GM halted production of all Saturns as of yesterday. The current new models for sale include 2008 Astra and the 2009 Aura, Aura Hybrid, Outlook, Sky, Vue and Vue Hybrid.
The 350 dealership will have to contains with the limited Saturn inventory that remains in their showrooms. A deal hatched back in May, 2009,of saving the Saturn dealership with South Korean Samsung vehicles replacing the Saturn evaporated. Penske Automotive Group (PAG) acquisition of the Saturn brand and other assets from General Motors (GM) in a memorandum of understanding between the two fell through.
Auto tycoon Roger Penske has shown signs that he is slowly putting together another business venture with his admitted interest in buying Saturn from GM. News this week indicates that once he has Saturn in his grasp, Penske will reportedly distribute and sell Korean-built Renault Samsung models via the American brand's nationwide dealership network.
Those penning their hope on the sell of Saturn to former car racer and automotive businessman Robert Penske are at a mystery as how the deal unraveled. Fort Wayne Jim Kelley, the sole Saturn dealership in the city was one of 250 hopeful left holding the bag as reported in a local newspaper:
Kelley said that, during a Thursday conference call with GM authorities in which he participated, there was no indication of what triggered Renault-Nissan's decision to back out
However, a press release reveals:
Penske Automotive Group, Inc. (NYSE: PAG) an international automotive retailer, today announced that it has terminated its discussions with General Motors Company ("GM") to acquire the Saturn brand, citing concerns directly related to the future supply of vehicles beyond the supply period it had negotiated with GM.
And General Motors had this to say:
Today we learned that Penske Automotive Group (PAG) has decided to terminate discussions with General Motors to acquire Saturn. 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. PAG's announcement explained that their decision was not based on interactions with GM or Saturn retailers; rather it was because of the inability to source new products beyond what it had asked GM to build on contract..
The Wall Street Paul Ingrassia suggest that the Saturn dealership operating as an independent car company distributing its competitors vehicles may have contributed to the transaction falling apart.
On Wednesday, what appears to be Saturn's death knell sounded when Roger Penske, the legendary automotive entrepreneur, abandoned his plan to buy Saturn from GM and run it as an independent car company. Mr. Penske's plan was a long shot anyway. He had intended to make Saturn a distributor and retailer only, procuring the vehicles from auto makers—initially GM and then France's Renault—on a contract basis.
One inherent problem was that the companies making cars for Saturn also would be its competitors, if only indirectly in Renault's case. (Renault controls Nissan, which competes head-to-head with Saturn in the U.S.) So it was little surprise when Mr. Penske couldn't reach acceptable terms with Renault and pulled out of the deal.
Renault-Nissan board were not as convinced as Chosn on the deal.
Ingrassia does not want anyone to think the demise of Saturn can be blamed on Penske. Nor is the blame on the workers, blame goes to Gm and UAW leadership.
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