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.

 

From what GM says, they spend about $100M a day in fixed costs - with nothing to show for it except the Camaro - so shedding the drag of Saturn comes as no surprise. Can GM make it until such time that we all rush to the lot to buy one of their promised new green cars?

 

It s too bad Saturn never got to keep doing their own thing. I owned a '92 for 14 years and as far as dependability, it was the best car I ever owned. The local dealer was very accomadating if I needed information to make repairs on my own. The parts guy never charged retail for parts. Many parts I could buy cheaper at the dealer than a jobber store or even Autozone.

It was the Sky that got me interested in 2 seater cars which eventually put me in a Crossfire for less money.

James

 

Indeed, a shame!
My daughter owns an Ion & has beat the crap out of that car for 3 years now. She's driven all over the country, hardly ever maintains the thing & other than for some oddball sensor issue it has never left her stranded.

And I'm STILL at a loss as to how the Saturn brand has been a loss leader for GM. You literally see them everywhere!

 

I agree! I was really surprised when I saw that in the news. Somewhere along the way they dropped that "the price you see is the price you pay" no haggle sales and they started selling cars at a loss.

 

Good riddence!!!! The one time I was interested in buying a Saturn(Sky Redline) the stealership tried mysteriously adding a $2,500 fee to my purchase a month after ordering the car and agreeing on the price............I then cancelled the car and told them I would NEVER consider buying a Saturn again.

 

Saturn started out as a refreshing new face on the automotive landscape, with some decent products and an attractive marketing strategy. But once they started to simply re-badge the Pontiacs, the glimmer wore off. A shame.

What is troubling, is that the sale to Penske was a linch-pin in the business plan of GM moving forward. I'm sure that this has a lot of people, including it's owner Obama, asking what to do now. GM desperately needs to put another product into the show room that holds the American interest, and I hardly see Fiat as the answer. So what now?

GM promised exciting new 'green' cars, but rushing anything though development and into the market will no doubt sacrifice the end quality of product, and time is not on GM's side.

Doesn't look good. Again.

 

We now own our second Saturn. Bonnie's 2002 L-200 has 243000 miles. She now has a Vue which is a very sound little car. Our dealership has been great. I'm sad.

 

It only took Renault 5 years to take AMC under. Now they've come up with a way to destroy another American manufacturer without even fireing a shot.
I've never been a big fan of Saturn myself, but I hate to see even more production jobs being lost here.

 

......But when Pontiac was disolved, all of the fixed costs had to have been assigned to Saturn. Just too big of a burden to carry all alone.

 

My Crossfire was the replacement for a 1995 Saturn SC2 that I bought when I turned 40. I made quick friends with the local dealership and they always went the extra mile to make sure that my service needs were taken care of. I gave the car to my son a couple of years ago and he drove it until the engine cradle finally gave in to 13 Ohio winters. The car had 150,000 miles on it with the original clutch (although there wasn't much clutch left). I had the brakes and exhaust system completely replaced twice, but the broken engine cradle was the proverbial straw that broke the Saturn's neck. I hated to see it go, but I could no longer afford to replace all the parts that were rusting away. Sad, because the plastic body looked as good as it did the day that I bought it. I still miss my little purple SC2. But then again, I miss all of my cars that have all been eaten up by road salt.