SATURN IS NO MORE! Penske walks away from GM deal!

Saturn fans will be saddened to hear that the brand is about to b
history. Penske Automotive Group (PAG) and General Motors have bee
in the final stages of negotiations to transfer the brand, but lat
this afternoon, both parties issued statements that Penske wa
walking away from the deal

The reason cited by Penske for the deal's demise is difficulty i
securing a supply of product beyond the end of 2010. GM had agreed t
continue supplying the Outlook, Aura and Vue until the end of nex
year, at which point Penske would get other automakers to produc
vehicles to sell through the Saturn dealer network

It was originally believed that Penske had a deal with Renault
possibly supplying vehicles from its South Korean subsidiary
Renault-Samsung Motors. However, the other automaker's board o
directors rejected the deal, leaving Penske out in the cold. In th
wake of the news, GM announced that it would wind down Saturn an
close all the dealerships. After Saturn dealers close, Saturn owner
will be able to get service from other GM dealers. You can read th
official statements from both Penske and GMchronicling the demise o
Saturn after the jump

[Sources: Penske Automotive Group, General Motors | Image Source: Bil
Pugliano/Getty

PRESS RELEASE

Penske Automotive Terminates Discussions with General Motors t
Acquire Satur

BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--Penske Automotive Group
Inc. (NYSE: PAG) an international automotive retailer, toda
announced that it has terminated its discussions with General Motor
Company ("GM") to acquire the Saturn brand, citing concern
directly related to the future supply of vehicles beyond the suppl
period it had negotiated with GM

Since announcing its discussions with GM on June 5, 2009, the compan
has been in the due diligence process to determine the feasibility o
developing an independent distribution model for Saturn-brande
products and service parts in the United States, including th
sourcing of vehicles from GM and other potential suppliers. Th
company had negotiated a definitive agreement with GM to sourc
vehicles on a contract-manufactured basis for a period of time. Afte
this period, the company would have been required to source vehicle
from another third party under a similar contract-manufacturin
agreement

Penske Automotive Group negotiated the terms and conditions of a
agreement with another manufacturer; however, that agreement wa
rejected by that manufacturer's board of directors. Without tha
agreement, the company has determined that the risks an
uncertainties related to the availability of future products prohibi
the company from moving forward with this transaction

General Motors Media Statement Attributed President & CEO Frit
Henderso

Today we learned that Penske Automotive Group (PAG) has decided t
terminate discussions with General Motors to acquire Saturn. This i
very disappointing news and comes after months of hard work b
hundreds of dedicated employees and Saturn retailers who tried t
make the new Saturn a reality. PAG's announcement explained tha
their decision was not based on interactions with GM or Satur
retailers; rather it was because of the inability to source ne
products beyond what it had asked GM to build on contract

As a result of PAG's decision, we will be winding down the Satur
brand and dealership network, in accordance with the wind-dow
agreements that Saturn dealers recently signed with GM. Pursuant t
the terms of those agreements, the wind down process will b
determined and communicated shortly

Saturn customers and owners will continue to be able to purchase an
have their vehicles serviced at Saturn retailers during this process
Once the wind down is complete, Saturn owners will still be able t
have their vehicles serviced at other GM dealerships. We will b
communicating with our customers very soon to explain the next step
in this process

Today's disappointing news comes at a time when we'd hoped for
successful launch of the Saturn brand into a new chapter. We will b
working closely with our dealers to ensure Saturn customers are care
for as we transition them to other GM dealers in the months ahead. I'd
also like to thank every GM employee and Saturn retailer who worked so
hard to try to make this new beginning happen for Saturn.

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