Some car showrooms were packed with potential buyers on Saturday, following the changes to the Certificate of Entitlement (COE) system announced earlier this week.
Some carmakers even cut prices ahead of the changes, which will come into effect next year.
Swedish carmaker Volvo said traffic at their showroom doubled, as they dangled discounts ranging between S$20,000 and S$30,000.
The luxury car maker has five models with an engine capacity of below 1,600cc.
But these models also have a high engine horsepower of more than 130 brake horsepower.
From February next year, these will be transferred from the current category A to category B, competing with other premium brands.
Carmakers seem to be benefiting, at least for now.
Chow Yi Ling, marketing manager for Volvo Wearnes Automotive, said: "Since the announcement of the COE re-categorisation, we have seen a surge in showroom traffic. Customers are even coming in on weekdays. In fact, we even saw sales increase mainly in Cat A cars.
"Although there is a demand for Cat A cars, there are also people looking for Cat B cars at the moment, because they don't know what is going to happen after the policy sets in when all the current Cat A models are moved to Cat B, so people who are keen or ready to buy are going to buy now as well."
Customers said they are likely to buy now, as the cars they are eyeing could cost more once the new rules kick in.
The changes were made after several months of public consultation to better ensure elements of social equity in car ownership.
And just as expected, the car showrooms are packed with the rich buyers looking to loot a Cat A luxurious car one last time before they get shifted into the Cat B COE. With Volvo models going for discounts between 20-30k, I admit that it is quite a draw. However, take a step back and think. If the demand rises, the COE bidding price will follow suit, and that will mean a rocketing Cat A COE, which somehow defeats any purpose of a discount isn't it? If a Cat A COE is 90k whereas a Cat B COE is 70k, the discounts will be all wiped out. Does it means these >130BHP cars will be cheaper now as compared to after they're shifted to Cat B? Not exactly so.
Some luxury car dealers are gearing up to lure buyers to their showrooms, beginning this weekend, in a bid to clear stocks of vehicles that will be reclassified as premium models from next February.
The move follows changes in the certificate of entitlement (COE) system, announced on Monday, in which a car's engine power will be included as a new criterion. Cars with over 130bhp or an engine exceeding 1,600cc will fall into Category B.
Dealers planning to go on a sales drive include Volvo agent Wearnes Automotive, which is looking to sell models like the S60 and S80. These currently belong to Category A - which caps engine displacement at 1,600cc - but will be re-classified under Category B next year.
Mr Victor Kwan, managing director at Wearnes Automotive, said the dealership will start clearing its 1.6-litre engine cars with "aggressive pricing".
Are you heading for the Volvo showroom this weekend? The S60 and S80 both sport a 1.6L engine but have a humongous 180bhp under the hood. In any case, with aggressive pricing comes the demand. Expect the Cat A COE to spiral upwards.
STOCKHOLM: Saab Automobile filed for bankruptcy on Monday, bringing to an end two years of efforts to rescue the iconic brand which has been the hallmark of Swedish cars for six decades.
The final desperate attempts to raise funds in China were frustrated by Saab's former owner General Motors which still holds key licences.
Saab's owner Swedish Automobile said in a statement that "the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors.
"It is expected that the court will approve of the filing and appoint receivers for Saab Automobile very shortly."
The court approved the filing several hours later and appointed receivers for Saab Automobile.
Swedish Automobile's charismatic chief executive Victor Muller had been due in court on Monday to determine whether to lift or extend the three-month bankruptcy protection Saab had been placed under while it was attempting to negotiate a rescue deal.
Muller had struggled to clinch an agreement in recent months with two Chinese groups, carmaker Youngman and car distribution company Pang Da.
But GM repeatedly said it would refuse to agree to the necessary technology licence transfers to the Chinese firms and Pang Da pulled out of the negotiations a few weeks ago.
GM owns the rights to Saab's models 9-3, 9-5 and 9-4X.
As recently as this weekend, GM reiterated its opposition to any deal with a Chinese suitor, a statement seen as the death knell for Saab.
"Each proposal results either directly or indirectly in the transfer of control and/or ownership of the company in a manner that would be detrimental to GM and its shareholders. As such, GM cannot support any of these proposed alternatives," GM spokesman James Cain said.
Swedish Automobile said Youngman pulled following Cain's remarks.
"In the end the complete lack of cooperation from GM was a big problem," Muller told a press conference at Saab's main plant in Trollhaettan, Sweden, adding that he had lost some 13 million euros of his own money in Saab.
He said, however "there are parties out there that have expressed an interest in Saab.
"Although this may seem like the end, it may not necessarily be so. There could be a new beginning, a possibility for Saab to rise like a phoenix out of the ashes," he added.
The attempts to sell Saab to Chinese partners were seen as the last chance of saving the carmaker, which was already on the brink of bankruptcy when GM sold it to Swedish Automobile - at the time called Spyker - in early 2010 for $400 million (308 million euros).
It has been a rocky road since then.
Saab - which began life in 1937 as an aircraft manufacturer, something which became evident in the aerodynamic, sporty shape of its first concept car designs -- was forced to halt production in April as suppliers stopped deliveries over mountains of unpaid bills.
Its funds ultimately ran out and Saab's 3,700 employees did not receive their November paychecks.
Employees and union officials were dejected after Monday's news.
"It's so sad," Ulf Drufva, who has worked at the Trollhaettan plant for 39 years, told Swedish news agency TT.
He said GM's blocking of the Chinese deal was "strange."
"It's as if GM sees Saab as a threat. And I can't understand that, as small as we are."
The head of the IF Metall union, Stefan Loefven, said bankruptcy was a tragedy for the employees and voiced hope that a buyer would save Saab intact.
"A scenario where the company is divided up is much worse and a lot more jobs risk being lost," he told TT.
The head of Trollhaettan city council, Paul Aakerlund, who was formerly the head union representative of Saab's branch of IF Metall, said there was still hope for the town's carmaking future.
"I know there are parties who want to buy all of Saab and run the business in Trollhaettan."
Others were less optimistic.
"I would be very surprised if anyone wanted to take over Saab," Lars Holmqvist, the chief executive of the European Association of Automotive Suppliers, told TT.
The end of the road for the Swedish car maker? There aren't many Saabs currently running in Singapore, well at least not as many as the Volvos I reckon, considering they come from the same country. Well it makes you wonder why. It has class, it has pedigree and it has good safety standards. Poor marketing? Overpriced?
