General Motors broke the news today that Penske Automotive Group would not purchase Saturn. The large dealer organization announced a proposed deal this past June to purchase the “different kind of car company.” Due to the withdrawal, GM will wind down Saturn production and the dealer network. (For background, see "GM Enters Agreement to Sell Saturn.")
Penske cites an inability to secure vehicles as the reason for withdrawing from the deal. It had negotiated the terms and conditions of an agreement with a yet-unnamed automaker, however, that agreement was rejected by that company's board of directors. The Detroit Free Press has reported that Renault-Nissan was the potential partner.
The announcement is a painful blow to the industry. Penske the man and organization is held in high regard, and this deal was considered the best chance for the future of the brand. The plan had been for General Motors to continue to supply vehicles through 2011, after which time Penske would source products from another automaker. This arrangement promised to shake-up the century-old business model and provide unique opportunities. For instances, a Penske-run Saturn could have potentially drawn vehicles from multiple automakers, thereby giving Saturn great market flexibility, while limiting the potential liabilities associated with manufacturing that nearly toppled GM and Chrysler.GM President and CEO Fritz Henderson said, “Today’s disappointing news comes at a time when we’d hoped for a successful launch of the Saturn brand into a new chapter. We will be working closely with our dealers to ensure Saturn customers are cared for as we transition them to other GM dealers in the months ahead. I’d also like to thank every GM employee and Saturn retailer who worked so hard to try to make this new beginning happen for Saturn.”Saturn joins Pontiac as a major brand with significant history and notable current products headed to join Oldsmobile in forced retirement. That leaves Hummer and Saab as remnants of the Old GM waiting to see if their sales will go through, or if they too will be consigned to the annals of history.
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