Saturn is dead -- Penske abandons deal to take over the troubled GM brand

September 30, 5:29 PMDC Car ExaminerBrady Holt

The Penske Automotive Group today abandoned its negotiations with General Motors to take over the Saturn brand and dealership network to reintroduce French Renaults to the U.S. market.
In a news release, Penske said Renault's board rejected its proposed terms that would bring the company's cars within a few years.

Penske's plan, announced in June, had been to pay GM to build three cars from the current Saturn lineup -- the Aura midsize sedan and Vue and Outlook SUVs -- until the Renaults could be sold in the U.S. But without those Renaults, or any products from Samsung, Renault's Korean subsidiary, the deal collapsed.
"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," the Penske release said.

GM will immediately begin "winding down" the Saturn brand, clearing out its remaining inventory to shutter its dealerships, the company said in its own news release.

Because Saturns are no longer unique -- the newer models share many components with other GM vehicles -- dealerships at other GM brands will easily be able to service the cars.