Saturn dealers want to spin-off from GM, start own company
Saturn dealers must be feeling pretty unloved by their parent company right about now. Yesterday, General Motors announced as part of its updated restructuring plan that the interstellar brand would not be getting any new products, meaning that it's left to die on the vine when the current range reaches the end of its lifespan. GM has experience with this routine, having euthanized Oldsmobile earlier this decade, spending enormous amounts of money paying off franchised dealerships along the way.Understandably then, both GM and Saturn dealers have a vested interest in keeping the brand alive. According to GM CEO Rick Wagoner, "[Saturn has] a good distribution network. If someone comes up with an offer, we're very open to that." Dealership owners are reportedly also interested in exploring that option. Dan Januska, owner of Saturn of Scottsdale and member of the Saturn Dealer Council says, "There are not a whole lot of alternatives. Someone is going to see the value of us and I don't know who it will be."
This may or may not be the best time to launch an offensive on the U.S. automotive market, but it would seem that any foreign automakers (China, India...) that are looking for a way to distribute their vehicles in America now have a extremely intriguing new option to consider.
[Source: Wall Street Journal - Sub. Req.]
Reader Comments (Page 1 of 4)
Juan Vasquez 3:42PM (2/18/2009)
If Tesla had money it would be a match made in heaven
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Doug A. 4:00PM (2/18/2009)
Strangely I agree. It would give them a distribution network as well as affordable cars to sell, that while they aren't electric people will buy them because it's from the same company.
Now if only they had any money to do this with...
Jared 4:34PM (2/18/2009)
Mahindra has a new cheap truck that's tough. Saturn has cheap little cars that are sorta tough. Saturn doesn't have a truck. Mahindra doesn't have a car at the moment..
hm...
Tool 4:38PM (2/18/2009)
The real strength of Saturn is its dealer network.
A smart up-and-coming disrupter--like a Tesla or a Fisker--would be smart to hook up with these guys.
Quattroporte 3:42PM (2/18/2009)
I could see Geely or possibly Mahindra being interested in this, or Fiat if it wants to dissassociate itself from Chrysler.
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stealthebeatles 3:49PM (2/18/2009)
If Geely bought Saturn, it would be tragic. Though I see Mahindra possibly being interested (since they are already actively trying to enter the US market).
I don't think Fiat would do this, since it would be significantly more costly than just going through Chrysler. And Saturn as an outlet for European cars has failed once already.
AZZO45b 4:03PM (2/18/2009)
Chrysler (especially with its Dodge & Jeep dealerships) has WAY more showrooms than Saturn.
Might work for Tesla, but not Fiat. JMO.
Chris 4:04PM (2/18/2009)
I wouldn't mind seeing Mahindra buying them or joining with them, I like the truck Mahindra is trying to bring to North America, and you know there stuff is good, since they have a good reputation with their farm equipment.
Rich 4:26PM (2/18/2009)
@ stealthebeatles:
"Saturn as an outlet for European cars has failed once already."
When? When has Saturn offered European "cars" (plural)? They didn't even get started with the Astra, and the Sky is significantly different from the Elise-based VX220 on which it's based (or Austin Metro, if you want to go back that far).
ckm 4:35PM (2/18/2009)
Besides the new Chinese manufacturers, there is also PSA (Peugeot/Citroen).
That's the only other large-ish manufacturer that does not have a US dealer network (that I could think of, anyway) besides Fiat.
Not sure about Mahindra, I don't think they have a full line of cars that are suitable for the US.
letstakeawalk 4:45PM (2/18/2009)
@ Rich
Saturn Astra = Opel Astra
Saturn Vue = Opel Antara
Saturn Sky = Opel GT (not the same platform as older Opel Speedster/VX220)
Saturn L-Series = Opel Vectra
montoym 7:13PM (2/18/2009)
To build off of letstakeawalk's correct descriptions,
Opel GT: http://photocarsonline.com/images/20070909072148_opel_gt_2007.jpg
Opel Antara: http://media.diariomotor.com/imagenes/Opel_Antara_02.jpg
Opel Vectra(Saturn Aura which replaced the L-Series): http://www.car-catalog.com/large_cars/opel_vectra.jpg
Notice any similarities there?
Basically Saturn just slapped their grille onto those cars and sold them as Saturns. With the exception of the Outlook, every current Saturn is an Opel.
tekd 4:25AM (2/20/2009)
The best thing for Saturn would probably be if SAIC bought it-a GM partner with plenty of experience building-and even engineering on-GM platforms, plus deep pockets to keep the company alive.
Anybody else buying the company would be tough-GM would basically be handing over all their current platform technology, and most other companies are either drowning in their own losses or not even close to technically capable enough to just step in and develop more advanced future Saturn vehicles.
Companies like Geely or Mahindra would be in way over their heads trying to develop all the new platforms they would get if they bought Saturn. SAIC on the other hand, is responsible for a lot of the improvements/modifications to GM vehicles (especially those sold in China), and they run a joint engineering and development center with GM in China already.
They could basically buy Saturn and keep running it as is-the platforms would be familiar, and they would know exactly how to make and improve on the cars.
And since SAIC already has access to all this knowledge and tech, GM won't be making themselves any new competitors from the Chinese market (SAIC of course also has a vested interest here).
If I had to take bets I'd bet on SAIC. Of course that's assuming anybody buys it, since there's also a fairly good chance that it's just not worth it or nobody has enough cash right now to go buy Saturn.
Juan Vasquez 3:45PM (2/18/2009)
Oh and product that too
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Jupiter 3:46PM (2/18/2009)
I'll buy it. How much?
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BlackEmblem 4:01PM (2/18/2009)
more than you can afford, pal
Sorry, I just had to. hehe
mankit 4:17PM (2/18/2009)
haha, i get it
StickShift 4:28PM (2/18/2009)
If you have to ask...
ckm 4:36PM (2/18/2009)
$5 cash.
And you have to take on $3 billion in liabilities.
P.V. 8:51PM (2/18/2009)
Remember, BMW sold the rights to Nanjing Automobiles of the Rover name for £10 (ten, not ten thousand, ten million, nor ten billion, but just 10.00). Saturn isn't that badly off, but it probably won't go for relatively much.
At any rate, I would like to see it spun off as an independent company. It could share parts and stuff with GM (like Mazda does with Ford despite Ford's puny stake in the company) but not compete internally with other GM products.