Penske buying Saturn?

[champcarray]

The AP reports that an unnamed source has leaked news that Roger Penske will buy Saturn. Please note that they don't even refer to Roger as an Indy Car team owner. Geez.


AP Source: GM to sell Saturn brand to Roger Penske
By TOM KRISHER, AP Auto Writer Tom Krisher, Ap Auto Writer
1 hr 32 mins ago

DETROIT – A person briefed on the deal says General Motors Corp. will sell its Saturn brand to former race car driver and dealership chain owner Roger Penske.

GM has scheduled a 9 a.m. EDT conference call with Saturn General Manager Jill Lajdziak. The person briefed on the deal said Penske will be on the call.

Penske has said his company, Penske Automotive Group Inc. of Bloomfield Hills, Mich., is interested in the Saturn brand.

The person briefed did not want to be identified because it has yet to be made public.

[disko]

just confirmed on CNBC

[champcarray]

More details:

11 mins ago
NEW YORK – General Motors Corp. strikes a tentative deal to sell its Saturn brand to former race car driver and auto dealer Roger Penske.

Penske, who owns the Penske Automotive Group dealership chain, told reporters on Friday that he plans to offer all 350 Saturn dealerships new franchise agreements. He says Saturn's 13,000 employees will stay on with the company for at least the immediate future.

He declined to name the price for the deal.

Penske says GM will continue to produce Saturn vehicles, though he is in discussions with manufacturers worldwide about building the vehicles going forward.

Initially GM would continue to make cars for Saturn, but Penske would also sign deals with other automakers to manufacture vehicles for the brand, said both people, who asked not to be identified because the plans have not been made public.

[16&Gtown]

More details:

11 mins ago
NEW YORK – General Motors Corp. strikes a tentative deal to sell its Saturn brand to former race car driver and auto dealer Roger Penske.

Penske, who owns the Penske Automotive Group dealership chain, told reporters on Friday that he plans to offer all 350 Saturn dealerships new franchise agreements. He says Saturn's 13,000 employees will stay on with the company for at least the immediate future.

He declined to name the price for the deal.

Penske says GM will continue to produce Saturn vehicles, though he is in discussions with manufacturers worldwide about building the vehicles going forward.

Initially GM would continue to make cars for Saturn, but Penske would also sign deals with other automakers to manufacture vehicles for the brand, said both people, who asked not to be identified because the plans have not been made public.

So will we see Saturn in ICS?

[MDS]

It just proves the old adage that opportunity never knocks louder than in a recession. I'm really curious to see what Roger and his group is going to do with the Saturn brand because to me its seemed like one of those good ideas that has never quite worked.

There's a really good article at the Wall Street Journal that explains how the Saturn is going to function. Basically they're going to be buying cars from GM and Renault and run a fairly lean operation. I think its interesting that he's not combining Saturn and Smart dealerships, but there are probably contractual obligations prohibiting that.

http://online.wsj.com/article/BT-CO-20090605-706741.html

[champcarray]

I wonder if the 2010 color choices will include Marlboro Red and Miller Blue? ;-)

[Chaparral66]

These rumors (now apparently fact) have been around for some time. If anyone can take Saturn and put it back on its proper course, The Captain can. He's got plenty of connections in the auto industry, both manf. and parts suppliers, and his business vision is as sound as ever. If I were Pres. Obama, I'd hire Roger Penske as automotive czar to help turn GM and Chrysler around.

[Jag_Warrior]

These rumors (now apparently fact) have been around for some time. If anyone can take Saturn and put it back on its proper course, The Captain can. He's got plenty of connections in the auto industry, both manf. and parts suppliers, and his business vision is as sound as ever. If I were Pres. Obama, I'd hire Roger Penske as automotive czar to help turn GM and Chrysler around.

Penske's name was actually mentioned late last year/early this year for just that. He was also rumored to be on the short list of names that could become CEO of GM. I think Penske got his name off both lists. He ain't no dummy. :D

I agree with MDS and others: Saturn was a great concept. It had a great cult following and could/should have been able to take on Honda and Toyota. But the jealousy and infighting within GM ruined it as a standalone brand. Maybe Penske can turn it around. And yeah, maybe there will be a Saturn sponsored car in the IRL at some point. Maybe we'll even see a Saturn engine in the IRL.

[DBell]

Here's a link I saw on this from a week ago. If this is right, then Samsung Motors from S. Korea playing a part in this.

http://reviews.cnet.com/8301-13746_7-10249272-48.html

[Chamoo]

Well, I would think there would be some tie into the ICS or FIL series. FIL still needs someone to badge their engines, and Saturn would be a good fit.

I could not see Penske not using this Saturn thing to his advantage some how or other. We'll see what happens.

[call_me_andrew]

Why Saturn? Why not a brand with some history to it like Pontiac?

[MDS]

Why Saturn? Why not a brand with some history to it like Pontiac?

Saturn has always been a simi-independent brand with its own dealerships and support structure, so its a lot easier to break off Saturn rather than Pontiac, which, as Starter pointed out, had just become just a Chevy with a different name. Probably the biggest asset Saturn had was a network of dealerships, which are generally newer and in better locations than other GM dealerships.

I love his plan for Saturn, there are at least a half-dozen forgin manufacturers who want a share of the US market but are unwilling, or unable, to build a network of dealerships in the US. By buying the best cars from these different companies and branding them Saturn they are going to have a line of small, fuel-effecient, proven cars that will be unique in the market. Since there are so many different companies to choose from Roger's group will probably be able to work a good deal, and Saturn should be profitable for the first time in its life. So effectively I'll be able to buy a right-side drive Renault for the first time in this country in two to three years.

Also, Penske picked up the entire brand for $100 million, a price every admits was a steal.

[nigelred5]

I was really looking forward to the plans to bring the new Opel Insignia as the Next Saturn Aura but that appears to have gone up in smoke with all this turmoil unless the new GM retains a significant percentage of Opel. Apparently GM's deal with Magna for Opel/vauxhall will specifically prohibit Magna from selling Opels in the US. It's also a shame that the Sky/Solstice/OpelGT is apparently caput. Talk about a baby Vette. Just typical of GM, even in bankruptcy.

[call_me_andrew]

How is a Renault with a Saturn badge better than a Chevy with a Pontiac badge?

[Lousada]

So effectively I'll be able to buy a right-side drive Renault for the first time in this country in two to three years.



Why would you want a right side drive Renault? I thought you Americans drove on the right side?
By the way, Renaults are the worst mainstream European cars.

[nigelred5]

How is a Renault with a Saturn badge better than a Chevy with a Pontiac badge?

It's not a Chevy to start with........ sorry, I couldn't resist ;) and his initial plans are for the Korean manufactured cars. Pontiac was far too entangled within the GM corporate and production structure to spin off. Saturn had traditionally been semi independent of most of GM's manufacturing structure and was essentially a seperate entity that COULD stand alone, unlike Pontiac. Saturn appeals to people that AREN't fans of traditional GM brands.

Roger's obviously on the small is better kick with the Smart Car and has a good eye on where the future automobile markets are going, and part of the Saturn brand image is they hade was the history of being small, basic fuel efficient vehicles that inexpensive cars produced offshore will fit into. The Saturn deal doesn't include RP buying ANY manufacturing plants that I have seen. He's only got a contract to have to buy cars from GM. Those people will have jobs for the short term, but I'd be getting myself some training in an alternative field if I were them, as it's pretty clear they are still likely gonna loose their jobs unless things improve dramatically for the restructured GM in short order. I won't be suprized to see Vehicles produced in china in Saturn dealerships before long. The Chinese produce things for others, but they don't market or sell and don't appear to want to. I can't think of one actual chinese brand name, but I know of dozens of manufacturing concern names that produce products sold by anyone willing to buy more than a container full of what they make.

He's buying an established brand, marketing and dealership and distribution network that fits his plans in a poor economy with escalating fuel costs. Pontiac has never fit anything in that mold.

[garyshell]

Apparently he isn't going to buy them. He could not reach a deal with anyone to manufacture them if he bought the company.

http://apnews.myway.com//article/20090930/D9B1SFD80.html

Gary

[Jag_Warrior]

Yep, the deal is dead... and so is Saturn.


GM kills Saturn after Penske ends deal

NEW YORK (CNNMoney.com) -- Car dealership operator Penske Automotive Group announced on Wednesday that it has cancelled plans to acquire General Motors' Saturn unit. As a result, GM said it will wind down the brand and dealer network.

http://money.cnn.com/2009/09/30/news/companies/penske_saturn/?postversion=2009093017

[Chaparral66]

Too bad. Give the Captain his due, he tried. Why wouldn't any manufacturer work with him? His rep seems to be pretty solid...

[Hoop-98]

No manufacturer could ramp up in time, there would have been a year or more gap with no cars after GM quit producing Saturn (2 years).

Big news here in Detroit today.

rh

[PA Rick]

No manufacturer could ramp up in time, there would have been a year or more gap with no cars after GM quit producing Saturn (2 years).

Big news here in Detroit today.

rh

If they could have reached an agreement it would have been smooth transition. GM announced they were shutting Saturn down today.

[Chris R]

Too bad. Give the Captain his due, he tried. Why wouldn't any manufacturer work with him? His rep seems to be pretty solid...

not sure his brand loyalty rep is all that solid - he has raced nearly every make under the sun and seems to be willing to switch up fairly readily if it suits him... perhaps this didn't help a long term deal - although I think it has more to do with the cruddy economy than anything else....

[Hoop-98]

As I said earlier, the news here in detroit is that it was the timing. No one could start production soon enough and there would be a product less gap.

rh

[Wade91]

Penske deal for Saturn from GM is off: 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. 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. 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.(ABC/AP)

http://jayski.com/cupnews.htm#news77wed

[Jag_Warrior]

I wasn't really following the Saturn saga. But I thought the original plan was for Penske to just keep building Saturns in existing GM facilities until those models ran the course, and then begin building new models with a different partner. I doubt they could make the numbers work by retooling some other plant, that's not currently making a car that already has some years on its lifespan. Plus a complete retooling could easily take a year or two before the first car could be produced.

There were high hopes in Spring Hill that this would work out. I'm really sorry to hear that it didn't. So this is bad news, and I think we're about six months +/- from hearing some bad news out of FIAT/Chrysler. There are a lot of Italians running around Auburn Hills with long faces these days... didn't realize how deep that hole was. Best joke I heard involved Marchionne renaming the venture FUBAR Motors, LLC.

[Hoop-98]

Nissan-Renault's board rejected the agreement. Without assurance they could source cars they had to stop the deal.

rh

[nigelred5]

No, my understanding was the deal always involved the eventual shutdown of hte GM plants. Penske was buying GM produced vehicles for two uyears only, then was reumored to be negotiating with a korean joint venture with nissan to buy korean/chinese produced vehicles and sell them under the saturn network. I suspect with Fiat entering the marked via chrysler, Nissan decided to sell those same vehicles themselves. My understanding of hte whole deal was it only prolonged the inevitable for the saturn manufacturing plants. I have three friends that worked in the wilmington plant producing the sky/solstice/opel GT and they were shut down and told domestic saturn would be totally closed out with in two years, even if Penske bought the company, so they took buyouts rather than transfers.

[Hoop-98]

Supposedly there was to be a two year wind down of Saturn in the current plants. I would think that something less than that would be plenty of time to start production of an existing, tested design in another facility. That assumes that the deal included the rights to all of the existing designs and not just the name 'Saturn'. Much of any car is made by sub contractors and there would be zero impact there - they'd just ship the parts to a different assembly facility.

The problem, IMO, is that Penske would have no leverage. 2 years would be a tight time frame to start looking for a new deal, finalize it, build tooling, start production, deliver cars.

Plus any manufacturer would know that Penske was over a huge barrel.

jm2c
rh

[PA Rick]

It sounds like GM wanted to keep the Saturn plants and only sell the brand and designs. Sounds like a bad seal for Penske.
RIP Saturn, they made some fun cars.

[garyshell]

It sounds like GM wanted to keep the Saturn plants and only sell the brand and designs.

That was the plan from day one when Penske negotiated the deal.

Gary

[Mark in Oshawa]

Penske didn't get rich by making large mistakes. GM was going to stiff him here and he stepped back from the precipice...

[garyshell]

Penske didn't get rich by making large mistakes. GM was going to stiff him here and he stepped back from the precipice...

I don't think the issue was GM. The issue was not finding a manufacturing partner. Roger was not buying any production capactiy with the Saturn name. He had to look elsewhere for that. He did but could not find a way to ramp production to meet GM's wind down of their Saturn lines.

Too bad. With Pontiac gone and now Saturn gone, there is no one to keep the Sky platform alive. I really liked the look of those and Pontiac's version.

Gary

[Mark in Oshawa]

I don't think the issue was GM. The issue was not finding a manufacturing partner. Roger was not buying any production capactiy with the Saturn name. He had to look elsewhere for that. He did but could not find a way to ramp production to meet GM's wind down of their Saturn lines.

Too bad. With Pontiac gone and now Saturn gone, there is no one to keep the Sky platform alive. I really liked the look of those and Pontiac's version.

Gary

It was GM. If Roger bought Saturn, he would need to keep getting the cars while getting another partner or to build plants. GM wasn't even going to guarntee him parts until he got up and running. In short, Roger pretty much needed to buy the plants out right and get his own suppliers. GM wasn't really going to help him in any way. At least, that is what was being speculated on the radio program I was listening to on the subject. It all could be BS..lol

I agree too Gary, the Sky/Solstice was one of the first GM cars in recent memory came out of the box pretty much perfect.

[Lemmy-Boy]

It's about time they killed off the Saturn brand. GM failed miserably at building up Saturn along with their many brands. The new Government Motors will not fare any better.

[Mark in Oshawa]

Saturn was a great idea but then they just made it another GM brand...which defeated the purpose of the idea. To build an "import" style of car in America. Great idea, but not if you give it crap styling, weak engines and questionable quality becuase you cheaped out on the quality of the parts. Only in the last 5 years did they give Saturn division some nice cars....the die was cast.

[PA Rick]

Saturn was a great idea but then they just made it another GM brand...which defeated the purpose of the idea. To build an "import" style of car in America. Great idea, but not if you give it crap styling, weak engines and questionable quality becuase you cheaped out on the quality of the parts. Only in the last 5 years did they give Saturn division some nice cars....the die was cast.

I thought GM might move Oldsmobile over to Saturn to add an upscale option.
Olds is gone, Pontiac is gone, Saturn is gone. And big trucks and motorhome chassis are gone, now produced by Workhorse.