REPORT: Investor group confirms they are bidding for Saturn; looking to sell multiple brands
by Chris Paukert on Apr 15th 2009 at 3:58PM 
In what General Motors spokesman Steve Janisse is calling a "very interesting" proposal, investor group Telesto Ventures has put in an official bid for Saturn. The consortium features a variety of backers, including Black Oak Partners LLC (a private equity group) and a number of Saturn dealers.
While the proposed deal doesn't appear to express interest in continuing to build or sell existing Saturn products over the long haul, the arrangement would apparently keep the 384-store network stocked with GM-sourced vehicles through 2011, allowing for an easier transition. According to Automotive News, Telesto's long-term vision hinges on selling vehicles from other manufacturers, primarily products from unnamed foreign companies. The plan, likened to the multi-brand approach favored by electronics giant Best Buy, would see a focus on smaller, fuel-efficient offerings that could also be sold by other outlets.
GM says a feasibility study into this program is underway, with a report scheduled for delivery to the brand's dealer body by early next week. If the deal goes through, one thing is for sure: Saturn will once again truly be "A Different Kind of Car Company," albeit not the sort that the division's founders originally intended.
[Source: Automotive News (subs. req.)]
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Reader Comments (Page 1 of 3)
Sektor 4:01PM (4/15/2009)
Since all Saturn does is sell rebadged GM cars (ie: doesn't have a factory), how the geniuses in this investor group plan to supply cars for Saturn?
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Throwback 4:08PM (4/15/2009)
Sounds like they will sell cars made by other companies. For example, sell Citroens and Peugeots. Saturn would be the "Best Buy" for cars. The cars would still be badged a Citroen, just sold and serviced at Saturn dealers. It would be an inexpensive way for foreign companies to enter the NA market. Whether the cars will sell is another matter.
zelosu 4:09PM (4/15/2009)
did you read the article before you posted your comment? I doubt
"According to Automotive News, Telesto's long-term vision hinges on selling vehicles from other manufacturers, primarily products from unnamed foreign companies."
Sektor 4:09PM (4/15/2009)
@Throwback: Yeah, like Americans are remotely interested in any of Peugeot or Citroen's offerings.
Sektor 4:10PM (4/15/2009)
@zelosu:
Yeah, I got that. It just sounds so sketchy.
Greg 4:21PM (4/15/2009)
If they get the relationships right with the other companies and build the right line-up from those offerings, this could be amazing.
Protzenegger 4:40PM (4/15/2009)
@ Sektor:
Peugeot is pretty hideous indeed these days, but I sure as hell wouldn't mind a Citroën C5. It can't be any less reliable than the Cadillac currently in our garage.
geo.stewart 5:21PM (4/15/2009)
actually, this would be pretty cool.
1-2 car manufacturers would have a 384 dealer network to tap into right out of the gate by signing up.
Buy your Saleen Viper, Tesla, Fisker, Hybrid Tech, Panoz here.
It would help propogate the development of new car companies by not having to deal with this on their own.
a kind of mini-automall for boutique mftrs.
Brent 8:51PM (4/15/2009)
Saturn doesn't have their own factory anymore? When did that happen?
RCSignals 5:35PM (4/17/2009)
with cars from China. China needs a dealer network in the US.
Throwback 4:10PM (4/15/2009)
Foreign cars where sold this way back in the fifties. One dealership selling multiple brands.
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Tourian 6:38PM (4/15/2009)
Seems like a neat idea, but how are they going to service all those different cars? Lets say they bring over the Nano, Megane, a Fisker, a Daihatsu and a couple of other nifty different cars I can't think of right now. You'd have four or five different cars, each with its own set of parts and its own set of tools and ways to service them. Your technicans better be aces and the parts department would be bigger then the dealership.
Still seems like a neat idea.
Conundrum 7:37PM (4/15/2009)
@ Tourian...
Parts would likely work very much like they do now. Whoever makes the cars would ensure parts avaliability much like GM currently supplies Saturn dealers with parts for the Astra (made in Europe), The VUE (made in Mexico), the Aura (made in Kansas), the Sky (made in Delaware), and the Outlook (made in Michigan).
Saturn would likely have a few stategically located parts warehouses with components needed to fix the Brilliance (from China), Citroen (from France), Alfa Romeo (from Italy), the Fisker (from the USA) and Tesla (from England)
Judy Zik 8:03AM (4/16/2009)
The openning is there for this to work this time around due to a few changes.
1) Overnight shipping around the world. It no longer takes 3 weeks to get parts from overseas.
2) Domestic dealerships no longer keep all the parts instock so we are now accustomed to having to make appointments and return trips for warranty service.
3) There is a huge list of foreign automakers looking to crack the North American market.
4) The foreign competition has expertise in building cheap small cars and sports cars. Two things severely lacking in our marketplace.
5) There is a huge vacuum being left behind by Chrysler and GM. Even if they survive it will be as much lower volume companies. It is doubtful any one car company will ever have the hold on the market GM once had so there is more room for smaller companies to thrive.
MRX19 4:16PM (4/15/2009)
This is the opening the Chinese are waiting for. An existing dealer network to peddle their deathtraps. Oh well, just another shovel of dirt on the grave of the American auto industry.
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s13hybrid 4:20PM (4/15/2009)
To bad those death traps will have to meet US standards, and making them just as safe as any other car can be that is sold here. Also probably making it to expensive for these chinese companies to bring their cars over.
I see this to be more than likely a way for some decent european companies to enter the US market.
Sektor 4:37PM (4/15/2009)
There are several Chinese companies whose cars should meet US safety standards. I am not familiar with emissions.
PlanetExpress 4:16PM (4/15/2009)
They will probably purchase Chinese cars and rebadge them.
here in South America a company called "Effa Motors", from Uruguay, is seeling Chinese cars in Uruguay, Brazil and Argentina with "Effa" brand (see www.effamotors.com.br).
These cars are from 2 or 3 manufacturers in China, but all sold in Brazil with the same brand.
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EXP Jawa 4:36PM (4/15/2009)
It's not all that different from what GM did in the '90s to fill out their Geo brand portfolio. So it could work if whoever takes over Saturn can reach the right agreements with whatever foreign manufacturer bites the hook. But it seems a far cry from what Saturn was originally conceived to be.
s13hybrid 4:16PM (4/15/2009)
So this will be like that specialty dealership that sells all kinds of exotic sports cars, only they will be econoboxes?
This could actually be a good way to add more variety to the market. I like it. Lets see if it would actually work.
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