South African commercial bank Absa said on Thursday it had seized dozens of Saab cars as security for finance provided to the car maker’s local distributor, Absolut Motor Holdings, Reuters reported.
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Absa media manager Errol Smith told Reuters that the local company, which has seen Saab sales fall sharply this year, was not being liquidated but was in talks with Saab in Sweden to find a solution to its problems.
“We have taken a number of Saab vehicles into safekeeping so that our risk profile remains securitised. Our exposure is very small…less than 25 million rand ($US3.57 million),” he reportedly said.
Smith did not give Reuters an exact figure, but said dozens of vehicles were in the bank’s custody. Executives from Saab and Absolut Motor Holdings were not available for comment on Thursday and local dealerships were closed, Reuters noted.
Industry data shows that sales of Saab vehicles in South Africa fell to 200 in 2002 from 379 the previous year, the news agency said, and, between January and September 2003, total sales amounted to 103 units.
Auto analysts have told Reuters small, independent importers in South Africa’s motor industry battle with a lack of “critical mass” which would enable them to make money from workshops with specialised mechanics who service the vehicles.
