Less than a week after officially filing for chapter 11 bankruptcy, General Motors has announced the pending sale of the Saturn brand to Penske Automotive. The transaction, if completed, would shift the rights of Saturn to Penske, and would continue the sale of the Aura, Vue, and Outlook vehicles under a contract basis with GM.
Although the deal could save more than 350 dealerships and 13,000 jobs, according to GM, it won’t save the slow-selling Saturn Astra hatchback or low-volume Sky roadster. Penske does intend to preserve the customer-focused mentality upon which Saturn was founded in 1990. “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.”
The completion of the sale is expected to close in the third quarter of this year, pending many conditions and approvals from the U.S. Treasury, which now holds a majority stake in GM. It has been rumored that Penske has been in talks with Renault Samsung Motors to import the Korean-built vehicles under the Saturn name. Already owning the sole distribution rights in the States to the teacup-sized Smart brand, it wouldn’t be shocking to see this rumor become reality.
Ownership by a small, agile organization like Penske makes sense for Saturn, which always aimed to be a small, agile organization itself. But the brand was continually hampered by the bureaucracy that comes with being part of a huge conglomerate like GM, losing out on development and advertising dollars to higher-volume divisions like Chevrolet.
Although the deal could save more than 350 dealerships and 13,000 jobs, according to GM, it won’t save the slow-selling Saturn Astra hatchback or low-volume Sky roadster. Penske does intend to preserve the customer-focused mentality upon which Saturn was founded in 1990. “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.”
The completion of the sale is expected to close in the third quarter of this year, pending many conditions and approvals from the U.S. Treasury, which now holds a majority stake in GM. It has been rumored that Penske has been in talks with Renault Samsung Motors to import the Korean-built vehicles under the Saturn name. Already owning the sole distribution rights in the States to the teacup-sized Smart brand, it wouldn’t be shocking to see this rumor become reality.
Ownership by a small, agile organization like Penske makes sense for Saturn, which always aimed to be a small, agile organization itself. But the brand was continually hampered by the bureaucracy that comes with being part of a huge conglomerate like GM, losing out on development and advertising dollars to higher-volume divisions like Chevrolet.
Thanks to: Car and Driver
