DETROIT — The Penske Automotive Group, in a surprise decision, has dropped out of talks to purchase the Saturn brand from General Motors. In a statement on Wednesday afternoon, GM President CEO Fritz Henderson said the termination means "we will be winding down the Saturn brand and dealership network." A Penske statement said it's pulling out because of the "risks and uncertainties related to the availability of future products."
The Penske group said it was calling off the discussions because of "concerns directly related to the future supply of vehicles beyond the supply period it had negotiated with GM." Penske's interest in purchasing Saturn was first announced in June, and the group had an agreement in place with GM to source vehicles on a contract-manufactured basis for a period, after which it would have been sourcing vehicles from a third party, also on a contract basis. PAG said its proposed contract with another manufacturer to provide vehicles after GM ceased production was rejected by that company's board of directors.
Henderson called Penske's decision "very disappointing news" and said Saturn's dealers will be told about plans for a wind-down "shortly." He said Saturn owners will still be able to purchase Saturn products and have them serviced by Saturn dealers, and later, by other GM dealerships once the brand is no more.
"We had hoped for a successful launch of the Saturn brand into a new chapter," Henderson concluded in the statement.
Inside Line says: An unexpected blow for General Motors as Saturn represented one of its most ambitious, and in some ways successful, programs of the last 25 years. — Laura Sky Brown, Correspondent
Add A Comment »