DETROIT — As time grows short for General Motors' June 1 reorganization deadline to avoid bankruptcy, reports are gathering steam that Roger Penske's Penske Automotive Group is planning to bid for GM's Saturn unit. GM's restructuring plan calls for elimination of the brand by year's end, although the company has said it could continue to build Saturns under contract to any new owner until the end of 2011.
Former Chrysler president Tom LaSorda is said to be working with Penske Automotive Group on the plan. The Detroit News reported on Wednesday that two auto dealers, Joe Serra and David Fischer, are talking with Penske about a partnership to acquire Saturn's distribution network, citing "people familiar with the discussions." Penske Automotive Group itself has more than 300 dealerships and, the paper reports, is interested in acquiring Saturn because of its dealer network and "possibly finding a foreign manufacturer to make new vehicles" that the Saturn dealers would then sell. Serra and Fischer both have large companies that have Saturn dealerships as part of their networks.
LaSorda, who left Chrysler on April 30, is acting as a consultant to Penske. CEO Roger Penske has publicly stated that his company is considering a Saturn bid.
Another suitor for Saturn is reportedly Magna International, the mega-supplier company from Canada, which is also said to be looking at a possible purchase of Opel.
Inside Line says: The next several weeks should be interesting as a number of parties show their hands. — Laura Sky Brown, Correspondent
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