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

Discussion in 'General Motoring' started by JLA, Oct 4, 2009.

  1. JLA

    JLA Guest

    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


    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

    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

    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.

    View the attachments for this post at:
    JLA, Oct 4, 2009
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