GM updates state of Saturn, potential buyers being reviewed
General Motors is busy putting the finishing touches on its third (or is it fourth?) viability plan, part of which involves the sale or shut down of the Saturn division. While many were expecting GM to close down Saturn, GM has released a press release to tell the world that the fledgling marquee is on the block, and there are several suitors in hot pursuit. The new owner will inherit the Saturn name and its 400 dealer-strong retail network. Advisory firm S.J. Girsky & Co. has been retained by GM to facilitate a deal.
The biggest of the Detroit 3 isn't putting a timetable on a Saturn sale, but the General is hoping to get something done later in the year. GM also isn't identifying any potential buyers at this time, but the Saturn dealer body has expressed interest in saving the marquee.
What isn't known is how much GM would be involved in future Saturn planning. All Saturns currently share platforms and are built in factories with other GM products. Unless GM also sells the new owner a factory (there will likely be a few open facilities to choose from), it will have to provide product for several years.
We'll likely find out more about Saturn's fate when GM submits its viability plan to the U.S. Auto Task Force on June 1. Follow the jump to read the brief GM press release.
[Source: GM]
PRESS RELEASE:
GM to proceed with efforts to sell Saturn
DETROIT - General Motors is proceeding to the next step with respect to the sale of Saturn. A number of potential buyers have surfaced and expressed interest in the Saturn brand and retailer network. GM will be reviewing expressions of interest from the potential buyers and will look to secure an agreement with a specific buyer later this year. S.J. Girsky&Co. has been retained by GM as advisor for this transaction. Saturn will continue to keep its retailers updated on its progress throughout this process.
About Saturn:
Saturn markets vehicles in the U.S. and Canada through a network of about 400 retailer locations, with a focus on providing innovative products with solid value and excellent customer service. The brand has one of the freshest lineups in the industry: the Sky roadster, the Aura midsize sedan, the Vue compact crossover, the midsize Outlook crossover and Astra compact car. Saturn currently offers two of the most affordable hybrids on the road, the Vue Hybrid and the Aura Hybrid.
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Reader Comments (Page 1 of 2)
Tango 9:10AM (5/05/2009)
but wait theres more!
drive home in a new saturn today and be made fun of by your friends tommorrow!
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Taylor. Yes, Taylor. 2:00PM (5/05/2009)
Not in my Sky... ;)
-Taylor
Gavin 9:11AM (5/05/2009)
I'm getting tired of hearing the same press release from GM regarding Saturn, every week since December...Makes me glad I don't work for Saturn anymore!
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Yikes 9:12AM (5/05/2009)
Say you buy Saturn, what do you get?
All I see are rebadged GM vehicles. Is GM going to throw in some factories, engineering branches, testing facilities?
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Judy Zik 1:38PM (5/05/2009)
This whole scheme makes such good sense that I am shocked to see GM management might agree to it.
The buyer gets 400 pretty new and decent dealerships that have an income from existing warranty work and an established customer base. A brand that is fairly well known with some entry level appeal. Access to some GM rebadges for a few years while they work on deals to replace them with products from overseas manufacturers that can't afford to set up a chain of dealerships in North America but would like access to the market (Chinese brands, Indian brands, etc).
GM get's money for something they would have thrown away. Avoids the dealer lawsuits. Has a customer willing to buy some of their excess capacity to sell as rebadges. If things go well enough they might even be interested in buying an old plant and some tooling. For instance it's a long shot but if the new owner did a better job promoting and selling the Sky it is possible to imagine them buying the plant and the tooling at fire sale prices since GM plans on killing it anyway.
DJ 9:18AM (5/05/2009)
The logical scenario would be that whoever buys Opel gets Saturn thrown in for nearly nothing. The buyer could then continue selling rebadged Opels in the US maket under the Saturn banner. If Fiat does indeed grab Opel, it would give them 400 fairly new dealership locations to sell Saturn, Chrysler and Fiat vehicles.
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Nightcrawler 12:19PM (5/05/2009)
Yeah, but doesn't Fiat/Chrysler already have too many U.S. dealers? Why would they want 400 more, even if they are newer?
Buzz 9:19AM (5/05/2009)
Renault is a buyer. Clio's as Saturns in a year or so.
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D Fisk 9:21AM (5/05/2009)
No one is going to miss saturn. Saturn is nothing what it was when it was started.
Does saturn even build their own cars anymore? I think the SKY was a great looking car. It was 1000 times better looking than the pontiac.
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8189720 11:26AM (5/05/2009)
I just don't get it...
After looking at the sales numbers a few days ago Pontiac is outselling Saturn by approx 3000 vehicles, but yet it is Pontiac that GM is getting rid of? WTF?
Jruhi4 9:25AM (5/05/2009)
The Detroit News is reporting that Roger Penske is one of the potential Saturn buyers:
http://detnews.com/article/20090504/AUTO01/905040385/1361/NHTSA-roof-crush-rules-will-cost-automakers-up-to-$1.4-billion-annually/Penske+emerges+as+possible+Saturn+buyer
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Kalle 2:17PM (5/05/2009)
Saturn is Penske material? :)
Somehow I am very doubtful on these offers that come from other than carmakers. Cerberus was pretty clueless in running Chrysler, so would Penske make any difference? Then again, Saturn is a slightly different case altogether.. hmm.
rgrdiggr 9:34AM (5/05/2009)
Saturn had some great car features early on but got sucked up into the GM mold and lost their individuality. What a shame.
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topgearsux 9:36AM (5/05/2009)
Unless GM is really trying to sell its fledging sign and the dealer body is really concerned about saving the sign, I'm pretty sure the word you're looking to use in this story is "marque" not "marquee."
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Mr.Oak 10:49AM (5/05/2009)
Thanks TopG, was about to correct them on that.
Marque = Brand name of an automobile.
Marquee = Rooflike projection above a theater entrance, usually containing the name of a currently featured play or film and its stars.
Nightcrawler 12:23PM (5/05/2009)
Marquis - And old guy's Mercury
Jerry Hightower 9:40AM (5/05/2009)
I do hope Saturn can be saved. Maybe the new owners will build the Sky coupe similar to the Pontiac Solstice coupe.
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JLevy 11:06AM (5/05/2009)
And who is going to build the Solstice?
Avinash machado 9:47AM (5/05/2009)
I think Saturn's main appeal was more the customer service and experience than the cars themselves. At least in the early days.
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Alex 9:49AM (5/05/2009)
The most viable plan, IMHO, would be for a company like Renault or Mahindra & Mahindra to buy the brand strictly to gain quick access to the US market. Saturn as a brand would be killed off but the dealerships would live on selling the vehicles of the new company.
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