According to sources familiar with the negotiations, Mitsubishi is talking to Saturn dealers to supply them with vehicles if the brand and its dealership network are sold this year. GM, which plans to phase out Saturn by the end of this year, said the brand could be supplied with vehicles on a contract basis after 2009.

If a deal with Saturn is approved, Mitsubishi will increase its presence in the U.S. by tapping into the GM brands 380 dealership network. No word on whether the vehicles sold under the agreement will carry a Mitsubishi or Saturn badge.

Mitsubishi was recently working on a small electric-car with Chrysler called the “Peapod Mobility.” However, talks have been suspended while Chrysler is in bankruptcy court.

Mitsubishi has one assembly plant in North America in Normal, Ill., and has about 430 dealers in North America. Last month, Mitsubishi sold 3,919 vehicles, down 55.9 percent from 2008.

- By: Kap Shah

Source: Detroit News