GM funds Saturn through 2012
The good news: Saturns will remain in production until 2012 or 2013... at least. The bad news: the Saturns currently being produced might not get any new updates or engineering before then. That's the bitter and the sweet that GM revealed to Saturn dealers at the NADA conference.
On the warm, fuzzy side of things, dealers are -- for the moment -- just happy to hear that Saturn isn't "going away in 30 days." While on the cold, dark side of reality it's clear that GM doesn't have much money, doesn't know how much it's ultimately going to get in loans, and can't fully fund all of its brands. That means that refreshing and re-engineering the current offerings might have to wait until the crystal ball is a little clearer.
It also means that Saturn could still be killed, it simply won't happen for another three or four years. Saturn's general manager said the brand's future should be known in the next three or four weeks and that the prime directive of the future will be to operate with a profitable business model, which has only happened once in Saturn's 20 years.
[Source: Automotive News - Sub. Req.]
Reader Comments (Page 1 of 3)
Avinash machado 10:43AM (1/26/2009)
Just kill it off. Make the Sky a Chevy. The Aura is not required since Malibu already exists. Kill the Outlook since the Traverse already fills that role. The next gen Astra could be sold as a Pontiac with a high performance package. The Opel Insignia goes to Buick etc.
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garlinski 10:50AM (1/26/2009)
I second that... No need for Saturn whatsoever.
Chris 11:20AM (1/26/2009)
Oh I like the idea of the Astra as a Pontiac. Ditch the G3... Although the Astra is similar in size and function to the Pontiac Vibe, if GM is going to ruin Pontiac because of the Buick-GMC-Pontiac dealerships, they may as well have a nice small car.
falcon5768 2:32PM (1/26/2009)
Give them the money. Due to the nature of the dealer contracts with Saturn, it would cost GM BILLIONS in dollars to "kill it."
They would have a easier time killing ANY of GMs other brands including Chevy before they could Saturn due to how Saturn was formed and re-incorporated into GM.
ed 6:13PM (1/26/2009)
Just combine Pontiac and Saturn and keep their best products and name the new company OPEL.
Brian 10:44AM (1/26/2009)
Glad to hear that. We have an 08 Aura XR and love it. the 3.6 has plenty of power and gets 25 around town and 31 on the highway. Great handling and very quiet inside.
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Kumar 10:45AM (1/26/2009)
It's my guess that GM is pulling a wait-and-see with the Fiat introduction to see if it will either kill of Saturn, or rename it Opel.
If they kill off Saturn, they'd be better off bringing the Opel rebadges under the Chevy nameplate, as they do in Mexico. Heck, they already started with the Malibu, why not complete the job? ;)
Still goes back to wondering why the big 3 aren't pushing for standardized safety tests between in North America and Europe.....costs quite a bit to modify cars for different markets.
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Ken Stamper 11:27AM (1/26/2009)
What would GM gain by spending money to introduce a brand most Americans have never heard of when they are having so much trouble with the brands they already have? I can guarantee there is a zero percent chance that GM will spend money to bring the Opel nameplate to the US.
Kumar 12:23PM (1/26/2009)
You're probably right about that, but that's my guess. They're probably trying to see how well Americans take to foreign name plates being sold at US dealerships.
We know by now that Opels are pretty good sellers, or at least can be if they're made here or in Mexico. The Astras are priced too high due to the exchange rate to make a dent at all.
The thing about adding too many Opel or Opel variants under the Chevy nameplate is the risk of alienating the die hard 'buy American' set. I, for one, think it would add credibility to the Chevy name to have astras and corsas instead of aveos and cobalts. Sure the cobalt sells well, but so do many super cheap cars that people buy because they need transportation.
Colin Smith 11:03AM (1/26/2009)
This is all moving deckchairs isn't it? The cars are the same, only the badging is being discussed.
Brand identity is important to many buyers and when the name on the front keeps changing I'd have thought some of them (me) would lose confidence.
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Jim in Tampa 11:07AM (1/26/2009)
The people I know who have Saturns are very brand loyal. But they are also the kind of people that if the Saturn name goes away, head off to Nissan and Toyota, not Chevrolet.
TomdeTomTom 11:27AM (1/26/2009)
Jim's got a point. The Saturn people I know wouldn't pick a Chevy if Saturn is closed.
It's the import fighter, and they would probably jump ship to the Prius or Civic.
The question is, do they constitute a high enough number of people to worry much about losing them?
jamie 11:06AM (1/26/2009)
Let's see...
425 Saturn franchises at $1 million each = $425,000,000
425 Saturns dealerships to buyout at $10 million each = $4,250,000,000
About 1,200 employees to pay severance to at $100,000 each = $120,000,000
Total (excluding lawyers fees, closing costs and other extraneous expenses) = $4,795,000,000
Yup, it sure likes we can dump Saturn with little or no hassle at all.
Now, where's Fritz?
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Kumar 11:36AM (1/26/2009)
Well, GM could split Saturn off into a separate company. When that goes bankrupt, then they don't have to worry about the franchise payoffs or severance.....not nice, but better than another 5 billion in taxpayer money.
Or they can do like Chrysler was trying to do to consolidate brands into one dealership, before the meltdown.
They were trying to make it so a dealer would have to have all 3 brands to have a complete lineup of car sizes. Pretty much forcing dealers to close or consolidate to stay competitive, and skirting those franchise laws in doing so.
So if GM leaves Saturn with 2 models, then the market will take care of the rest.
Jason 11:07AM (1/26/2009)
BRING BACK THE S CARS! IT WILL SAVE SATURN! And now back to your regularly scheduled program...
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Brandon 11:09AM (1/26/2009)
So in otherwords their plan is not kill Saturn so as not to have to buy out all the Satrun dealers contracts, but not update any Saturn for 4 years so that the dealers go bankrupt on their own. Pretty dirty strategy if you ask me. I like my Saturn and I like my Saturn dealer. I would have a lot more respect for GM if they just killed the brand, but if GM screws the Saturn dealers by not updating any products for the next 3 years in hopes that they fold on their own, my current 08 will be my last GM product.
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harlanx6 11:12AM (1/26/2009)
Are people going to risk the purchase of a car that is likely to be orphaned in 3 or 4 years? Are people going to be interested in a car brand that doesn't have the resources to innovate it's designs in this at a time when it's competitors are implementing revolutionary improvements?
It looks to me like Saturn is dead, but just hasn't fell over yet. Remaining static in a rapidly changing market is the kiss of death. It is a shame because Saturns are decent, American made cars. They have been innovative, with their green line cars, and should be the front line of GM's new technologies. I hate to see them go, but GM is acting like they are going, going, gone.
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AZZO45b 12:43PM (1/26/2009)
Yes, history shows they might. Oldsmobile sales stayed about the same AFTER it was announced GM would kill it off...
harlanx6 1:29PM (1/26/2009)
Oldsmobile was a flagship brand, with extremely loyal owners, but they just got too old to drive.
AZZO45b 4:36PM (1/26/2009)
harlanx6: Tell that to my 48 year old cousin & my 54 year old uncle who bought Olds Aurora(s) due to the sweet deals GM offered up. Yes, Oldsmobile had a crusty old demographic on average... but not everyone buys for the badge/ history.