Saturn Closing

Saturn Closing

Saturn’s days are numbered — Recent reports have let us know that Penske Automotive group has backed out of a deal with GM that would have effectively purchased the entire Saturn brand. The reason for the backing out is because Penske fears they will not be able to provide the Saturn dealerships with inventory after GM stops supplying them with vehicles at the end of 2010. The deal said that they would have to find their own manufacturers to produce vehicles for the dealerships, something Penske doesn’t think they will be able to do. So, in lieu of this deal falling through, GM has said they will be phasing out Saturn, closing all dealerships and directing current Saturn owners to other GM dealers for service. Goodbye Saturn, you shall be missed. This news is just in: Penske Automotive Group and General Motors have both issued statements announcing that negotiations between the two for the Saturn brand has been terminated.

Saturn has been one of the GM casualties of the financial crisis, with GM announcing a few months ago that the brand would be shuttered. Upon hearing this, Saturn’s leadership and fans attempted to mount a campaign to secure an independent future by being bought by another company, Penske Automotive Group. Tat effort has reached a dead-end. This is very disappointing news to all the Saturn employees and loyal customers that have tried so hard to keep Saturn alive. The problem lies with Penske Automotive Group’s ability to secure products for Saturn bey0nd the supply period it negotiated with GM. Apparently, PAG negotiated an agreement with another manufacturer (unnamed) to supply new products, but the agreement was rejected by that manufacturer’s board of directors. Penske didn’t want to risk purchasing the brand and having to deal with all the problems of winding it down itself if new product could not be secured.