Days after GM officially filed for Chapter 11 bankruptcy, the automaker has announced an deal with Penske Automotive Group, which will officially acquire the Saturn brand.
Under the proposed deal, Penske would officially own the Saturn brand and GM would continue production of the Saturn Vue, Aura and Outlook on a contract basis. The Saturn Astra and Sky are apparently not part of the deal, which means they will be dead. The deal will save 350 dealerships and approximately 13,000 jobs.
The deal is expected to close in the third quarter of this year.
PRESS RELEASE:
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.
Comments (12)
Good for Saturn; here's hoping for a wacky Saturn-branded Mégane Coupé sometime in the unforeseeable future.
Posted by lotsofTRidiots | June 5, 2009 8:18 PM
Posted on June 5, 2009 20:18
Save the outlook and not the sky.....that doesn´t seem to make much sense. I wonder if GM still has plans to do something with Pontiac and so it´s just the sky derivation that´s gone and not the platform.
Posted by thetruth | June 6, 2009 6:15 AM
Posted on June 6, 2009 06:15
This could be a really good thing. Maybe Penske could takeover mfg in the future & leave GM...
Posted by Think | June 6, 2009 8:32 AM
Posted on June 6, 2009 08:32
The Sky is the most interesting Saturn model and the one most likely that I would purchase. There goes GM making another "great" decision.
Good thing the U.S. Government will be there to bail them out again!
Posted by WTHeck | June 6, 2009 12:32 PM
Posted on June 6, 2009 12:32
The Sky is the most interesting Saturn model and the one most likely that I would purchase. There goes GM making another "great" decision.
Good thing the U.S. Government will be there to bail them out again!
Posted by WTHeck | June 6, 2009 12:39 PM
Posted on June 6, 2009 12:39
Agreed. The Sky is the only vehicle in the Saturn lineup I've ever taken for a test drive and considered purchasing. Keeping 2 SUV's doesn't and losing the small cars makes no sense whatsoever.
Posted by RC | June 6, 2009 3:31 PM
Posted on June 6, 2009 15:31
Despite the fact that the Sky is the one true sports car offered by Saturn, its sales numbers are just too low...and I think GM was aware of this too. Its annual sales since 2006 linger around 10,000 units. Furthermore, it isn't really an "import fighter" like GM intended Saturn to be, although its sales numbers are definitely better than the S2000s.
Point-in-case: Saturn needs to sell cars that will sell...LOTS. That's how they can stay competitive and survive. The Sky and cars like it won't be selling like hot cakes, so how can you bring over that reliability-minded, Camry-driving soccer mom ubiquitous in every other suburban household? That's where the Aura comes into play...and don't even mention the Astra; it was a failed joke to begin with.
In other news, another article states that Penske's acquisition of Saturn could EVENTUALLY be like the Best Buy of the auto industry in that they will not be overseeing production of any Saturn-specific vehicles but instead rebadge foreign vehicles like Renault or Opel.
P.S. Whatever happened to the Dodge Demon? Oh well...
Posted by lotsofTRidiots | June 6, 2009 8:48 PM
Posted on June 6, 2009 20:48
@ TR
I think your "point-in-case" is correct, which is partially why everyone is suprised by this news. So the Sky sells in low volume, but does Penske really think a premium priced full size crossover (Outlook) is going to be a vehicle that sells LOTS? I'm assuming they've done their homework and realize, as you stated, practicality rules these days, so if they choose to ignore that why not go for something that adds image to the brand and has present in a unsaturated (but small) market. If Penske is going to take one for the team at least the Sky could have been considered a loss leader, which the Outlook cannot. But I'm biased eitherway because I like the Sky and from an SUV perspective the Q7 TDI is about the only one I'll be test driving anytime soon.
Posted by thetruth | June 7, 2009 1:03 PM
Posted on June 7, 2009 13:03
Mothballing both the Sky and the Astra? Isn't Astra about to get a redo, anyway?
A pity on both accounts - the Sky for the cool and halo factor, the Astra for practicality and things to come, oil-speaking. Not everyone wants a Vue hybrid.
Posted by Kawi | June 8, 2009 4:45 AM
Posted on June 8, 2009 04:45
The astra may have been a good shot at the mpg market, but from an "economy" perspective it was too expensive to compete. I think the Aura has a similar position, but a family sedan has a little more room in it's price due to more favorable (money wise) target demographics, plus it really seems to be pretty good car. I personally think it beats the pants off a Camry, but I'm willing/capable to spend a little extra on the v6. I must say the tap shifters on the I4 do little to nothing, failed attempt to make the car sporty.
I actually like the view as well, from the outside it has very upscale looks, inside....it's acceptible. Too bad the redline didn't get a worthy engine.
Posted by thetruth | June 8, 2009 7:12 AM
Posted on June 8, 2009 07:12
I am actually glad that this deal is happening. Penske has already made inroads in the US with introducing Smart vehicles. Now, he has a dedicated dealership network, continued products(Aura.Vue,Outlook) plus freedom to introduce other models (i.s. Smart, Electric only, other imports). Not to mention, that Saturn survives without the apathy of its GM overlords.
Posted by longdxcommuter | June 8, 2009 2:02 PM
Posted on June 8, 2009 14:02
Roger Penske = high performance sports cars for the Saturn lineup in the future? That would be awesome.
Posted by SteelCity1981 | June 8, 2009 5:36 PM
Posted on June 8, 2009 17:36