Delta Motor Corporation is involved in negotiations to distribute Saab in South Africa after dealerships in Johannesburg, Pretoria and Cape Town were closed last week.

Delta Motor Corporation is involved in negotiations to distribute Saab in South Africa after dealerships in Johannesburg, Pretoria and Cape Town were closed last week.

Since CAR magazine received a tip-off last week but could not find sources to confirm the move, it has emerged that Delta is trying to secure the rights to distribute Saab in SA. Prior to 1999, Delta was responsible for Saab’s operation until Absolut Motor Holdings’ take-over.

A statement from Delta Motor Corporation states that "these discussions are still at an early stage and one of the focus points will be ensuring that the service and maintenance needs of Saab customers are catered for."

Absolut, a family company, referred all queries to Saab SA MD Theo van Staden but he refused to confirm or deny the company’s current status, saying that they were "trying to establish what has happened".

Van Staden said a statement "on the facts" would be issued soon and that “to report anything other than that would be irresponsible."

Banks that provided finance to Saab South Africa have taken control of the local company's vehicle stock "so the vehicles don't disappear".

Friedel Meisenholl, manager of credit and risk management of banking group Absa, confirmed these actions and said that Absa was aware that negotiations were underway to resolve Saab SA’s problems.

Late last year, the Saab 93 was released in South Africa with very little fanfare and between January and September this year Saab SA reported total sales of only 103 units. Absolut's aim when it took over the Saab distributorship in 1999 was to increase local sales from about 240 units in 2000 to 750 this year.

Original article from Car