GM and Penske announce tentative deal for purchase of Saturn

Saturn has become the third General Motors brand to find a buyer after Opel and HUMMER. The Penske Automotive Group (PAG) headed by Detroit business tycoon Roger Penske is the successful bidder that outdid 15 others in the race to acquire the 24 year-old brand. This is a 100% ownership deal for PAG.

GM will continue supplying vehicles like the Aura and the Outlook for the next two years while the PAG finalises manufacturing agreements with another company other than GM. Penske said he hoped that a worldwide partner would take over the building baton off the hands of GM. The situation is not ideal at the moment since the two companies are now effectively in competition.

"We are bringing together two icons: the Saturn brand and the Penske organisation," said Jill Lajdziak, Saturn's general manager. "When completed, this deal will save more than 350 dealerships and over 13,000 jobs in the United States."

PAG has the second-largest dealer network in the US. The company is also the sole distributor of the Smart car in the country.

As for the question of exactly who is Roger Penske, well, in a nutshell he has numerous interests in automotive and motorsports related companies, but he is the guy who brought back to life companies like Detroit Diesel Corp and Hertz Truck Leasing. Making Saturn work could be a different proposition altogether. Last year it sold just 188,000 vehicles, down 27% on 2007 figures.

Source: GM via freep.com

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General Motors, Penske outline proposed deal for purchase of Saturn

Transaction would save more than 13,000 jobs; preserves renowned brand and retail network

Detroit -- General Motors Corp. and Penske Automotive Group today confirmed details of a proposed transaction under which Penske would acquire the Saturn brand. If completed, the deal would save more than 350 dealerships and 13,000 jobs at Saturn and its retailers in the United States, and would preserve the customer-focused Saturn brand.

The proposed transaction is part of GM's rebuilding efforts outlined in the viability plan that was submitted to the U.S. government earlier this year. Under the terms in the memorandum of understanding, Penske would obtain the rights to the brand as well as certain other Saturn assets. GM would continue production, on a contract basis, of the Saturn Aura, Vue and Outlook.

"This is the combination of two iconic teams: Saturn and Penske," said Saturn general manager Jill Lajdziak. "GM had the vision to create Saturn and has the desire to see it succeed in the future."

"Saturn has a passionate customer base and outstanding dealer network," said Roger Penske, chairman of Penske Automotive Group. "For nearly 20 years Saturn has focused on treating the customer right. We share that philosophy, and we want to build on those strengths."

Saturn began selling cars in 1990 and has sold more than 4 million vehicles. More than 80 percent of those vehicles are still in operation, according to data from R.L. Polk. Saturn has regularly scored among the industry leaders for non-luxury brands in customer satisfaction surveys.

"There has been a groundswell of support for Saturn, with our retailers and owners urging us to save the brand," said Lajdziak. "We heard their call loud and clear, and it inspired us as we worked to secure Saturn's future."

The transaction is expected to close in the third quarter of this year and is subject to customary closing conditions and regulatory approvals. Financial terms of the agreement will not be disclosed at this time.

GM to close Saturn after Penske pulls out of deal
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Dodge pulled their support of NASCAR--maybe we'll see Kurt Busch in the #2 Saturn Ion.

June 5, 2009 7:13 pm

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politz

great... i'm happy for saturn... even though they havent succeded as much as gm wanted, the brand was the only actually bold, creative, innovative step made by gm as a corporation in decades... and now it shows that, in some level, it payed off, as saturn has got a future ahead of it while pontiac was left to the auto history books.

June 5, 2009 7:53 pm

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politz

if only they could make samsung versions of the european renault line up and then sell them as saturns... well, take a look at the current samsung line up and you'll see some dated, boring nissan-based cars... being the qm5, which is nothing more than the european renault koleos, the only vehicle possibly fit for the american market now. so mr ghosn might have to check renault's european stable for more interesting picks... i mean, the clio would make a reasonable fiesta fighter also on the state side... the new megane coupe could be one hot gti fighter... there could be a sedan version of the megane for the american tastes as well... and even a four door sedan version of the laguna could be easily designed for the u.s., since the five door hatchback body isn´t all that popular... and wait, a saturn version of the hot hot hot laguna coupe, with a nice v6 and all, how cool would that be?

June 5, 2009 8:01 pm

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MAB

Penske now has the opportunity to double-deal and establish a co-manufacturing plan with European Vauxhall-Opel to turn Saturn into their American arm. Make it a stand alone Euro brand, guys, come on. *Oh, and drop the minivan if you manage. *

June 5, 2009 8:31 pm

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joshg_5

That would be sick!

June 6, 2009 12:25 am

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Xanavi23

This is incredible news. Saturn might just become my pocket favorite manufacturer. In the next 40 years the Penske corp could make it reeally something, even from a performance standpoint. Maybe fix those issues with the Saturn skyy.

June 5, 2009 8:58 pm

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archytype

Saturn has a way of taking a high end GM product (Saturn Outlook for example), making it appear smaller, less expensive, and more import oriented that it is. My Ex- bought one loaded because she doesn't want people to know how much money she has (her poor clients and myself). Also the Saturn is more like Mercury in it's appeal to women. I hope Penske isn't stealing from Peter to pay Paul and can create a unique identity with these cars.

June 6, 2009 12:15 pm

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