Saab Contract Hire (SCH) has shut its doors to all new business.

Masterlease, which owns the SCH operation, has also stopped writing any new fleet contracts for Saab vehicles.

The move will be a blow to the carmaker, which sees a high proportion of its new car sales go into the fleet sector.

In 2008 Saab sold 16,074 cars in the UK with fleet registrations accounting for 10,781 of these.

Masterlease said it took the decision following the Swedish manufacturer’s effective move into administration, which happened last week.

Parent company General Motors severed links with Saab last month.

“With immediate effect, Masterlease will no longer provide contract hire and leasing quotations on Saab vehicles through its own brand or through its Saab contract hire operation,” said a Masterlease spokesman.

“This is due to the recent announcement by Saab AB (Sweden) to file for Reorganisation, which is an alternative to an outright bankruptcy filing.

“All orders which had been confirmed by close of business on 20 February will be honoured and these vehicles will be processed and delivered as normal.”

However, Saab UK stressed that it is still owned by General Motors UK and not Saab AB of Sweden.

"Saab is talking to various funding partners in respect of contract hire, both private label and general,” said a Saab UK spokesman.

“In the meantime, Saab will continue its normal day-to-day operations with respect to sales, service and parts activities in the UK.”

The company reassured fleets already running its vehicles and those contemplating such a move, saying it stands behind its warranties.

“In respect of supply contracts with fleets, these contracts are with Saab Great Britain Limited and for General Motors UK Limited and, as such, the terms and conditions contained therein remain unaffected."