By KIMBERLY S. JOHNSON The Associated Press Wednesday, September 30, 2009 5:04 PM
DETROIT -- General Motors Co. said Wednesday it would shut down its Saturn brand after an agreement with Penske Automotive Group Inc. to acquire it fell apart.
Penske, citing concerns of whether it could continue to supply vehicles after a manufacturing contract with GM ran out, ended talks with GM Wednesday to acquire the brand.
GM CEO Fritz Henderson said in statement that Saturn and its dealership network will be phased out.
"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," Henderson said in a written statement. "PAG's announcement explained that their decision was not based on interactions with GM or Saturn retailers."
In a statement, the Bloomfield Hills, Mich.-based auto retailer says an agreement with another manufacturer to continue producing Saturn vehicles after GM stopped making them fell through, leading Penske to terminate talks with GM.
Penske said it negotiated terms and conditions to make Saturn cars with another manufacturer, but that company's board of directors rejected the agreement. Penske spokesman Anthony Pordon would not identify the other manufacturer.
"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 company said in a statement.
In June, GM and Penske agreed to take over the Saturn brand and related dealerships, although GM would produce the vehicles for a limited period of time.
GM said Saturn vehicle owners can still go to their Saturn dealer for service and would be able to go to a certified GM dealer for service once Saturn dealerships are closed.
It was expected that GM would announce the completion of Saturn's sale to Penske in the coming days.
Share of Penske fell $1.93 to $17.25 in after hours trading. They rose $1.32, or 7.4 percent to $19.18 in regular trading Wednesday.
I bet the "other manufacturer" was Opel as most of the current Saturn line-up were just rebranded Opels in any event. With the sale of Opel, I bet that deal fell apart.
Quite frankly, I'm glad to see Saturn go. I always resented that brand, and in fact think it is one of the biggest mistakes GM ever made. It's whole premise when it was created was that "we aren't like those other GM brands", in other words, it basically insulted and put down the traditional GM brands like our beloved Pontiac in order to succeed. We are so different, a "different kind of car company" basically meant the rest of GM was junk. They never wanted to admit they were a GM brand or in any way be associated with GM. As far as I'm concerned, good riddance.
-- Edited by Astro Jet on Wednesday 30th of September 2009 11:28:30 PM
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Hillar
1970 LS4 (eventually an LS5) Laurentian 2dr hdtp -and a bunch of other muscle cars...
Quite frankly, I'm glad to see Saturn go. I always resented that brand, and in fact think it is one of the biggest mistakes GM ever made. It's whole premise when it was created was that "we aren't like those other GM brands", in other words, it basically insulted and put down the traditional GM brands like our beloved Pontiac in order to succeed. We are so different, a "different kind of car company" basically meant the rest of GM was junk. They never wanted to admit they were a GM brand or in any way be associated with GM. As far as I'm concerned, good riddance.
-- Edited by Astro Jet on Wednesday 30th of September 2009 11:28:30 PM
I couldn't have said it better myself Hillar. I always thought that most Saturns were under-powered, and many of the designs/stylings were questionable.
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Prince Edward Island
'64 Parisienne CS "barn find" - last on the road in '86 ... Owner Protection Plan booklet, original paint, original near-mint aqua interior, original aqua GM floor mats, original 283, factory posi, and original rust.
Quite frankly, I'm glad to see Saturn go. I always resented that brand, and in fact think it is one of the biggest mistakes GM ever made. It's whole premise when it was created was that "we aren't like those other GM brands", in other words, it basically insulted and put down the traditional GM brands like our beloved Pontiac in order to succeed. We are so different, a "different kind of car company" basically meant the rest of GM was junk. They never wanted to admit they were a GM brand or in any way be associated with GM. As far as I'm concerned, good riddance.
-- Edited by Astro Jet on Wednesday 30th of September 2009 11:28:30 PM
I couldn't have said it better myself Hillar. I always thought that most Saturns were under-powered, and many of the designs/stylings were questionable.
I'm with you guys. It seemed to me the motto should have been"Saturn, the car for people that hate cars"
I bet the "other manufacturer" was Opel as most of the current Saturn line-up were just rebranded Opels in any event. With the sale of Opel, I bet that deal fell apart.
Quite frankly, I'm glad to see Saturn go. I always resented that brand, and in fact think it is one of the biggest mistakes GM ever made. It's whole premise when it was created was that "we aren't like those other GM brands", in other words, it basically insulted and put down the traditional GM brands like our beloved Pontiac in order to succeed. We are so different, a "different kind of car company" basically meant the rest of GM was junk. They never wanted to admit they were a GM brand or in any way be associated with GM. As far as I'm concerned, good riddance.
-- Edited by Astro Jet on Wednesday 30th of September 2009 11:28:30 PM
I spent a lot if time int the UK this summer, and the Saturn Astra is just a rebadged Vauxhall Astra. They are all over London. That would jive with Hillar's reference to Opel, and I understand the Vauxhall products sold in the UK are made by Opel. I recall the UK unions expressing concern about UK jobs when the Magna takeover of Opel was announced.
I bet the "other manufacturer" was Opel as most of the current Saturn line-up were just rebranded Opels in any event. With the sale of Opel, I bet that deal fell apart.
Quite frankly, I'm glad to see Saturn go. I always resented that brand, and in fact think it is one of the biggest mistakes GM ever made. It's whole premise when it was created was that "we aren't like those other GM brands", in other words, it basically insulted and put down the traditional GM brands like our beloved Pontiac in order to succeed. We are so different, a "different kind of car company" basically meant the rest of GM was junk. They never wanted to admit they were a GM brand or in any way be associated with GM. As far as I'm concerned, good riddance.
-- Edited by Astro Jet on Wednesday 30th of September 2009 11:28:30 PM
