GM to shut down Saturn after Penske terminates talks with GM on uncertain future assembly

[BlueCrush]

OUCH!!!! Get your Saturn while you can.... Quote »GM to shut down Saturn after Penske terminates talks with GM on uncertain future assemblyBy KIMBERLY S. JOHNSON , Associated PressLast update: September 30, 2009 - 4:03 PMDETROIT - General Motors Co. said Wednesday it would shut down its Saturn brand after an agreement with Penske Automotive Group Inc. to acquire it fell apart.Penske, citing concerns of whether it could continue to supply vehicles after a manufacturing contract with GM ran out, ended talks with GM Wednesday to acquire the brand.GM CEO Fritz Henderson said in statement that Saturn and its dealership network will be phased out."This is very disappointing news and comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality," Henderson said in a written statement. "PAG's announcement explained that their decision was not based on interactions with GM or Saturn retailers."In a statement, the Bloomfield Hills, Mich.-based auto retailer says an agreement with another manufacturer to continue producing Saturn vehicles after GM stopped making them fell through, leading Penske to terminate talks with GM.Penske said it negotiated terms and conditions to make Saturn cars with another manufacturer, but that company's board of directors rejected the agreement. Penske spokesman Anthony Pordon would not identify the other manufacturer."Without that agreement, the company has determined that the risks and uncertainties related to the availability of future products prohibit the company from moving forward with this transaction," the company said in a statement.In June, GM and Penske agreed to take over the Saturn brand and related dealerships, although GM would produce the vehicles for a limited period of time.GM said Saturn vehicle owners can still go to their Saturn dealer for service and would be able to go to a certified GM dealer for service once Saturn dealerships are closed.It was expected that GM would announce the completion of Saturn's sale to Penske in the coming days.Share of Penske fell $1.93 to $17.25 in after hours trading. They rose $1.32, or 7.4 percent to $19.18 in regular trading Wednesday.

[keithvibe]

doh

[Old Tele man]

...sounds like the "...house of GM..." is slowy imploding!...first Olds, then Pontiac, Hummer, Saab, now Saturn.

[jake75]

So ends a 19 year experience that they say never turned a profit for GM.It is probably in the best interests of GM and any other car manufacturer to just let Saturn die. Only so many sales to go around - no sense in letting Saturn have any.There are going to be a lot of dealer bankruptcies, a lot of unpaid bank loans, and a lot of empty real estate holdings. I think the owner of the 3 Saturn dealerships in Columbus also owns Nissan dealerships. The Saturn deal was a nice ride for them ever since the first Saturn came off the line in July 1990. No haggle - they sold for msrp. A cult developed - one even stronger than you see for the Vibe. Owners returned to Mecca, aka Springhill, TN, for an annual picnic. Dealer profits must have been good compared to other brand dealers who were fighting each other selling near or below invoice. Also, I suspect the average Saturn dealer turned twice as many cars as those of other makes. But those prior earned acorns probably have been spent long ago.Now there will probably be an abundance of haggling for the remaining Saturn inventory. Could be a great opportunity.

[KNINE]

The government can't let let Saturn die. Jobs will be lost.

[scherry2]

"Penske said it negotiated terms and conditions to make Saturn cars with another manufacturer, but that company's board of directors rejected the agreement. Penske spokesman Anthony Pordon would not identify the other manufacturer.Gee I wonder why?its was an India or China Manufacturing Group much like the Hummer sale.

[ColonelPanic]

I was wondering how the arrangement with Saturn simply being a retailer peddling other people's wares was going to work out... Not, i guess. Oh well, Penske did try to keep the brand alive. Not like it is that great of a brand anyway... It showed promise in its early years, but Saturn died when it started selling the same junk you could get elsewhere at the General.

[star_deceiver]

Quote, originally posted by Old Tele man »...first Olds, then Pontiac, Hummer, Saab, now Saturn.I'd hazard a guess that GMC is next, that or Government Motors itself. Starting out fresh only works when you leave ALL your failed ideas and executives in bankruptcy court. I hope everyone working with/at Saturn has printed out there resumes!

[jake75]

But Hummer and Saab are being sold - will live on.

[scherry2]

hummer has not been sold to the china group yet.and no GMC will not be next. you seem to think it GM's fault but saturn and hummer were a part of the bad GM in bankruptsy. and most of the managment has been notified of relocation to other manufacturing plants.

[Houston]

The fewer manufacturers competing against the New General Motors, the more vehicles GM sells.

[Old Tele man]

...hmm, does NGM mean 'New General Motors' or 'No Good Motors'?

[ou.grizzly]

Well that is not good. Sad to see the Saturn dealers to go - always had good service.

[Whelan]

I guess they will have to go get work at the new Acura/Audi/BMW plants being built in the US.