GM, Saturn Dealers Split on Playing Up Penske Name

(NEWSER) - Saturn's hopes of a life after GM ended today when a deal to sell the brand to Penske Automotive fell through. GM said it will now begin shutting down manufacturing and dealership operations. Penske canceled the deal—which could have saved about 13,000 jobs—because it couldn't swing an agreement with an unnamed third party to supply vehicles, reports the Detroit Free Press. More»

(NEWSER) - Roger Penske could be just what the mechanic ordered for Saturn, analysts tell the Detroit News. By leaving the manufacturing work to others—initially GM and then, for a time, foreign automakers—Saturn's new buyer will be able to focus on sales and marketing and avoid the pitfalls GM faced. “This is blazing a new trail that’s an exciting one,” said Blue Book’s executive market analyst. “He has a very good chance.” More»

(NEWSER) - Roger Penske, the racecar driver turned business tycoon, will buy the Saturn brand and dealer network from GM. The deal will save 350-plus dealerships and some 13,000 jobs if it goes through, the bankrupt parent company said in confirming the tentative agreement. The price is between $100 million and $200 million, a source told Bloomberg. More»

Half of those that appealed will be allowed to stay open

(NEWSER) - About 600 GM dealerships are getting a second life. Of the 1,160 dealers who appealed orders to shut down as part of bankruptcy proceedings, approximately half will be allowed to stay open. But one dealer tells the Detroit News that it's no cause for celebration until the conditions are made clear, possibly as soon as today. More»

Brand was an unsustainable distraction from the start

(NEWSER) - As General Motors’ Saturn experiment ends with a whimper, it’s important to understand that the brand was a failure from the start. Some obituaries blame GM for not providing a fuller roster of vehicles to build customer loyalty—but if anything, the automaker gave Saturn too much, writes Mark Ritson. Saturn was created in the mid-'80s to compete with cheap Japanese imports. But in order to compete, Saturns had to be cheap, too, making the brand unprofitable from the start. More»