GM to shut down Saturn brand

[Kmossphotos]

General Motors said Wednesday it will shut down its Saturn brand, after negotiations with potential buyer Penske Automotive Group (PAG) collapsed.

Penske, which owns more than 300 auto dealerships around the world, pulled out of the talks when it couldn't strike a deal with another manufacturer to build Saturn cars, it said in a statement. That doomed the 25-year-old marque to join Pontiac among the brands that haven't survived GM's restructuring.


GM CEO Fritz Henderson said in a statement that the Saturn line and its dealerships will be phased out, the Associated Press reported. A GM spokesman said Saturn dealers will have until October 2010 to wrap up operations, according to Bloomberg News.


Under a tentative deal between the two companies, GM would have continued manufacturing Saturns for a limited time. It would then have been up to Penske to arrange for another car maker to step in.

Penske had reached an agreement with an unspecified automaker to pick up production of the cars, but it was vetoed by the company's board, according to a statement. "Without that agreement, the company has determined that the risks and uncertainties related to the availability of future products prohibit the company from moving forward with this transaction," Penske said

 

[Crazynuff]

More info Collapse of Penske Deal Spells End For Saturn - WSJ.com

 

[greg334]

This is the brand that they need to keep. It has the loyalty and the sales to sustain itself outside the system. Penske could have gotten even honda to get involved to produce the vehicle. Here we are wondering why couldn't Penske get one of the GM or Ford plants that have been closed to produce the vehicle.

GM should fail at this point, it didn't do a thing to improve the problems plaguing it while under bankruptcy which is the old system is still in place with the same thinking that got it into trouble. Cutting brands like Saturn and selling off Opel and other foreign operations does nothing to boost their real issue of the losses of market share in the home market.

 

[arkjarhead]

GM is slowly killing themselves. The only sad thing is when they getting ready to go again we will just bail them out again and again and again and again.

 

[davekc]

I would have dumped their duplicators like Buick and GMC before I dumped Saturn. Then again, they may be coming soon as well.
Not quite a surprise, but again last month, GM and Chrysler dropped 40 plus percent after cash for clunkers.
Ford dropped 5 percent.
I'm thinking some stayed away from those brands because of the bailouts. Way to go Obama.

 

[Turtle]

On the bright side, prices have been slashed at the Saturn Store on Saturn branded merchandise, like $20 t-shirts for five bucks, $5 baseball caps, and 75 cent pens. Nice $75 watch for $25, too.

Now if only they'd slash the prices of their cars by 50% or more.