Penske Deal Falls Through – Saturn Brand to Die Off
9/30/2009
Part of GM’s deal to emerge from bankruptcy was to rid itself of unprofitable brands such as Saab, Hummer, Pontiac, and Saturn. Saab and Hummer found a home, Pontiac was shuttered, and it seemed Saturn would continue on under Penske Automotive Group. But today both GM and Penske Group announced that the deal would not go through, and that Saturn would cease production.
Penske Group had announced its interest in Saturn on June 5th of this year, and intended to outsource the entire production of vehicles and parts, a massive endeavor. Unfortunately for the Saturn brand, Penske ran into trouble securing suppliers after the end of 2010, the date GM would stop producing the vehicles under the agreement.
Penske had reportedly been working with Renault to secure a deal for manufacturing, but the deal was rejected by Renault’s board of directors, leaving Penske with no manufacturer, and therefore no plans for future production. With this news, GM decided to wind down the business, as it is doing with Pontiac. The official date has yet to be determined.
When Saturn closes its doors, Saturn owners will still be able to go to other GM dealers to get service and parts through the life of their cars.
