GM cuts warranty terms on Saab vehicles sold in U.S.

DETROIT (Reuters) - General Motors Corp has cut its warranty terms on Saabs sold in the United States to cut costs, but will continue to provide free scheduled maintenance to compete with other premium brands, a spokeswoman said on Monday.

GM told dealers on Friday it would cut its Saab warranty effective immediately to four years or 50,000 miles from the extended warranty of seven-years or 100,000 miles offered on other vehicles, spokeswoman Joanne Krell said.

The carmaker provides free scheduled maintenance for three years, or 36,000 miles on Saab vehicles in addition to the warranty, setting it apart from other GM vehicles, Krell said.

The combination of a four-year warranty and the scheduled maintenance "makes sense to the import premium buyer, which is where Saab fits in the automotive landscape," Krell said.

The decision to cut the warranty terms applied only to the Saab brand and does not apply to GM's other premier brands Cadillac and Hummer, Krell said. She did not have a dollar figure on the cost savings.

GM earlier in July said it planned to cut $10 billion of costs and make asset sales of up to $4 billion to shore up its liquidity due to the downturn in U.S. auto industry sales that has landed most heavily on large trucks and SUVs.

GM has been shopping its Hummer brand, but Chief Executive Rick Wagoner said on Friday the automaker remained committed to Saab, which analysts have long suggested could be divested to allow GM to narrow its brand focus.

The warranty change has absolutely no connection to any discussion about changes in brand status with GM, Krell said.

Jerry York, who served briefly on GM's board two years ago as a representative for investor Kirk Kerkorian, had suggested that GM divest Saab and Hummer among other strategies that were rejected by GM executives at the time.

(Reporting by David Bailey, editing by Leslie Gevirtz, editing by Dave Zimmerman)