It promised much but Roger Penske's attempts to buy the Saturn brand and dealership network from General Motors hit a major stumbling block this week: it didn't have any cars. Penske Automotive Group and GM released a joint statement overnight announcing that plans for the takeover had failed because PAG had been unable to secure a supply of cars beyond 2010. GM has committed to providing the current Saturn range of vehicles to PAG until the end of 2010 at which point Penske was aiming to have a new range sourced from an alternative manufacturer. Renault was rumoured to be in discussion about providing vehicles to Saturn but those talks appear to have gone nowhere. Faced with the prospect of having no cars beyond next year, Penske has understandably stopped the negotiations meaning Saturn will join Pontiac and Oldsmobile as defunct GM brands. "Today we learned that Penske Automotive Group (PAG) has decided to terminate discussions with General Motors to acquire Saturn," explained GM CEO, Fritz Henderson. "This is very disappointing news and comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality. PAG's announcement explained that their decision was not based on interactions with GM or Saturn retailers; rather it was because of the inability to source new products beyond what it had asked GM to build on contract. "As a result of PAG's decision, we will be winding down the Saturn brand and dealership network, in accordance with the wind-down agreements that Saturn dealers recently signed with GM. Pursuant to the terms of those agreements, the wind down process will be determined and communicated shortly." Thabks to: Car Point
Hot News: Penske Walks Away from Saturn
Hot News: Chrysler News
With Fiat now calling the shots in Auburn Hills, many have wondered what the future holds for Chrysler. While the Pentastar won't say, information has been leaking out over the past week that points to new product, revised existing product and possibly a spin-off of the Ram as a brand.
The biggest piece of scuttlebutt that's been floating around the automotive world is that Chrysler plans to spin-off the Dodge Ram as its own truck, SUV and large van brand, much like GM's GMC. Separating Dodge Ram trucks from the Dodge brand would allow Chrysler to refocus the Dodge brand on performance cars rather than vehicles for every need. It would also allow Chrysler/Fiat to sell off the truck brand should circumstances become dire enough.
Also rumored is that Fiat will soon instigate rapid-fire changes to existing products and even a new model. Answering calls from customers, dealers and auto journalists alike, Fiat is said to be working the design studio overtime to get new interiors into Chrysler's products as soon as possible and bring them up to industry standards.
Also in Fiat's sights are the Chrysler Sebring and Dodge Avenger twins. In an abrupt about face, Fiat has stayed their long-awaited execution and will instead work to revamp the oft-panned mid-sizers. No less than Fiat CEO Sergio Marchionne himself is promising a drastic improvement, saying "They have a great future. You'll love the cars." A big gamble to hang one's hat on, but the payoff could be big if Marchionne pulls it off. Also saved from the scrap heap and slated for an overhaul is the long-in-the-tooth Chrysler PT Cruiser, which will soldier on for a few more years with an update of unknown scale.
Fiat isn't just focusing on sprucing up Chrysler's aging line-up, either. Rumors also indicate that the company is hot for new product for the Chrysler line-up, and we're not just talking about the Chrysler dealer-sold Fiat 500. Word is, Fiat is ramming a new model through the Chrysler design and engineering studios as fast as possible hoping to get it on the road by the end of 2011. Little is known about this new model, but it's possible it could be a production version of the Chrysler 200C, the new Jeep Grand Cherokee or an all-new model. While the new model will give Dodge/Chrysler/Jeep dealers their first all-new model since the Dodge Challenger, Fiat is hoping to keep the momentum going with more new models rolling out in 2012.
Of course, it's important to stress that these are all rumors and claims substantiated by anonymous sources. Fiat and Chrysler have refused to comment on any of it for the time being, though the official company revival plan is expected to be shown to the government's automotive task force sometime this week. Chrysler's board was reportedly briefed on the plan last week, but Chrysler has said that it will not make any of its product plans public until it unveils its five-year plan in November. Until then, we'll keep you up to date on the latest Pentastar news as we become aware of it.
