Ken’s Take: I seem to be the solitary mind thinking that GM should keep the Saturn brand and distribution network and use them for sale and distribution of electric and hybrid cars. Seems like a perfect fit to me.
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Excerpted from WSJ: Collapse of Penske Deal Spells End For Saturn, Oct. 1, 2009
A deal to save GM’s Saturn brand fell through after former race-car driver Roger Penske unexpectedly abandoned a bid to buy its network of dealers, prompting GM to say it would shut the operation down.
It also likely will add Saturn’s 350 dealers to the thousands of U.S. auto retailers that are closing in the car industry’s worst downturn since World War II.
The novel bid to create a car company that didn’t build cars fell apart when Penske Automotive Group failed to secure a related agreement to have France’s Renault SA supply autos for dealers to sell when GM stopped building Saturns in about two years.
For Saturn, it likely means the end of the road for a quirky brand that analysts believe never made money in its 19-year history. GM created Saturn in an attempt to better compete against Japanese auto makers such as Toyota Motor Corp.
Saturn won loyal fans who liked its customer-friendly image and no-haggle sales policy.
But GM produced few new Saturn models in the 1990s and, despite a flurry of critically acclaimed cars added this decade, it never met its sales targets.
The chance of another buyer stepping in to purchase Saturn is remote.
Saturn will wind down by October 2010 under agreements GM already made with the brand’s dealers. Many of the dealerships are expected to close before that deadline. GM remains in talks to sell Saab and Hummer, and is shutting down Pontiac.
GM said earlier this year that Saturn, Hummer and Saab generated an average annual pretax loss of $1.1 billion a year. The moves leave GM with four brands: Chevrolet, Cadillac, Buick and GMC.
Full article:
http://online.wsj.com/article/SB125434260817353567.html?mod=WSJ_hps_LEFTWhatsNews#printMode
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