General Motors’ efforts to sell Saturn to Penske Automotive Group fell through last month. The automaker is no longer producing Saturn vehicles as it proceeds to shutdown the brand completely. According to Automotive News, in an effort to clear out the remaining Saturn inventory, GM today launched an incentive program that runs through the end of the month.

Those looking to buy a new Saturn can either get $4,000 off any 2008 or 2009 model or 0 percent financing for 72 months. GM is also sending current Saturn owners an additional $1,000 cash regardless of whether they trade in their Saturn or not.

“They have to have owned or leased their Saturn vehicle for a minimum of six months to qualify,” said GM spokesman John McDonald. “They get $1,000 cash, and that can be combined with other incentives.”

GM said today that Saturn had 9,400 vehicles in its inventory in the United States at the end of October.

- By: Omar Rana

Jill Lajdziak, who joined General Motors’ Saturn brand before its first car was ever sold, will retire from the company by the end of 2009. Lajdziak, 52, led the Saturn brand through its demise last month.

She will take vacation time until her retirement said spokesman John McDonald. In the mean time, GM’s Steve Hill will coordinate the wind-down the brand.

Retailer Penske Automotive Group decided to withdraw its bid to purchase Saturn from General Motors. The Detroit automaker decided to close the brand last month. The brand will shutter when “dealers are able to sell their inventory and wind their dealerships down,” McDonald said.

Lajdziak started at GM in 1980 as a district sales manager with Chevrolet.

- By: Omar Rana

Following Penske Automotive’s termination of talks with General Motors to acquire Saturn, the Detroit automaker has halted production of the brand’s cars and crossovers and plans to sell the thousands of units left in its inventory within the next four months.

GM said that many of the vehicles were built to supply Penske Automotive. GM spokeswoman Sherrie Arb said that GM built the last Saturn within 24 hours of Penske’s statement made last week.

GM said it has about 12,000 Saturn units in its inventory; it’s unclear how man of those are 2009 models.

“We sold about 3,000 Saturns last month, so that’s about a four-month supply if you maintain that selling pace,”said Mark LaNeve, GM’s vice president of U.S. sales. “I don’t think [the canceled sale of the brand] will affect our total 2010 production rate at all.”

- By: Kap Shah

Source: AutoWeek

By now, most of you know that Penske Automotive Group has terminated its discussions with GM to buy Saturn. According to a report by Automotive News, some Saturn dealers say they will look for other franchises now that Penske has canceled plans to acquire Saturn. Others say they will wait and see if Penske revives the deal.

“I guess I’ll be selling the competition,” said George Nahas, who owns Saturn stores in Alabama and Florida. He said that some import brands want him to carry their products.

Following Penske’s statement, GM’s CEO Fritz Henderson said that the company will wind down the Saturn brand and its 350 dealer network through a process to be finalized in the near future.

It was reported earlier today that Penske failed to finalize a deal with Renault and its South Korean unit, Samsung, to supply Saturn dealers with vehicles.

- By: Omar Rana

Coming as a shocker to most of us, Penske Automotive Group announced yesterday that it has “terminated its discussions with GM to buy Saturn, citing concerns directly related to the future supply of vehicles beyond the supply period it had negotiated with GM.”

Originally, Pesnke’s plans were to sell GM made models for the next three years. After the three year period, Penske was to fill Saturn dealerships with other products from various automakers. Sources continually said that Penske was in talks with French automaker Renault and its South Korean unit, Samsung to supply Saturn dealers.

Renault COO Patrick Pelata confirmed today that talks with Penske to sell vehicles through Saturn broke down last minute.

“We negotiated with them but we were unable to reach agreement at the end,” Renault COO Patrick Pelata told Bloomberg News in an interview.

Pelata said that Nissan-Renault CEO Carlos Ghosn was not in favor of supplying Penske with cars to sell through Saturn showrooms.

- By: Omar Rana

Source: Bloomberg (via AutoObserver)

Just yesterday we reported that General Motors Company was to announce the sale of Saturn to Penske later this week. Well, things have shockingly changed. Penske Automotive Group just announced that it has terminated its discussions with GM to buy Saturn, citing concerns directly related to the future supply of vehicles beyond the supply period it had negotiated with GM.

“Since announcing its discussions with GM on June 5, 2009, the company has been in the due diligence process to determine the feasibility of developing an independent distribution model for Saturn-branded products and service parts in the United States, including the sourcing of vehicles from GM and other potential suppliers,” Penske said in a statement. “The company had negotiated a definitive agreement with GM to source vehicles on a contract-manufactured basis for a period of time.”

“This is very disappointing news and comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality,” GM CEO Fritz Henderson said in a statement.

Fritz said that GM will be “winding down the Saturn brand and dealership network, in accordance with the wind-down agreements that Saturn dealers recently signed with GM.”

GM said that Saturn customers can continue to purchase vehicles and have their vehicles services at Saturn dealers. It said that once GM is done winding down the brand, Saturn owners can still have their vehicles services at other GM dealerships.

“We will be working closely with our dealers to ensure Saturn customers are cared for as we transition them to other GM dealers in the months ahead,” Fritz said. “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.”

- By: Omar Rana

According to news coming out of Detroit, General Motors Company will announce Wednesday or Thursday that it has completed the sale of Saturn to Penske Automotive Group. GM has not confirmed the report.

Roger Penske has previously said that Saturn dealers will sell GM made models for at least three years through their current lifecycle and will eventually sell vehicles from other part of the world by offshore manufacturers.

Penske is shopping for other products that could fill Saturn dealerships in the next 12 to 18 months. Sources say that we can expect vehicles from French automaker Renault and its South Korean Samsung unit.

On a side note, Saturn executive Jill Lajdziak, who has been involved with Penske group to close the Saturn sale, has reportedly requested an early retirement package and will not be joining Penske.

- By: Stephen Calogera

Source: AutoObserver

Penske Automotive Group’s founder and chairman Roger Penske, said that his company plans to buy Saturn from General Motors Company by the end of September. He said that he was considering using the Saturn brand to sell vehicle sold outside North America, but is focused first on the U.S. and Canada, reports Automotive News.

“I think that we’re past midfield with GM. There are always issues that you have to deal with, but I think we’re progressing well,” Roger Penske said. ”We’ve said that our goal is to close this transaction by the end of September, and we’re prepared to do that.”

Under the terms so far, GM will continue to supply Saturn with the Aura sedan, Vue SUV and Outlook crossover until at least 2011.

As for those that already own a Saturn or plan on purchasing one, your service and warranty will be valid through Penske. Penske would acquire the rights to Saturn and would by inventory of replacement parts to service the roughly 3.5 million Saturns on the road now.

The roughly 350 Saturn dealerships in the U.S. would remain independently owned and operated.

- By: Omar Rana

As we look forward to our 2009 Pontiac Solstice Coupe GXP press car next week, today marks the last day of operations for GM’s Boxwood plant in Delaware – the plant responsible for building GM’s Kappa-platform roadster, the Pontiac Solstice and the Saturn Sky (and the recently introduced Solstice Coupe).

Both models, which sold well for General Motors Company, were killed off when the Detroit automaker announced that it will kill Pontiac by the end of 2009 along with selling Saturn to Penske Automotive Group.

“To me, it’s not a celebration,” said James Graves, a 29-year veteran of the factory. “It’s a sad day. It’s like a funeral.”

GM spokesman John Raut said the plant’s final vehicle was a silver Solstice, which rolled off the assembly line this morning.

- By: Omar Rana

Source: DelawareOnline

An estimated 70 Saturn dealerships closed this year before the brand’s savior Roger Penske announced plans to acquire it from General Motors and keep all the dealers in business. Penske Automotive Group will now be looking to fill Saturn stores with vehicles from other brands – and Kia isn’t one of them.

Nonetheless, Kia saw a huge opportunity in all of Saturn’s recent chaos. The Korean automaker is now helping its dealers convert closed Saturn stores into a new Kia store.

“We’ve picked up a number of Saturn locations over the past several months in the East and West,” Tom Loveless, vice president of sales at Kia Motors America told Automotive news.

“There is no grand plan to take over one brand over another, but Saturn facilities tend to be more appropriately sized for our needs. They’re also newer and exclusive. But the biggest thing is that this gives us is speed.”

Loveless says that Saturn dealers have the most robust parts and service businesses and a “strong emotional tie to their stores.” He said that Kia is also in discussion with many Saturn dealers about keeping their existing stores an adding a Kia store with a parts and service operations.

- By: Omar Rana

About 350 Saturn dealers will be receiving a letter this week offering them a chance to continue under the brand’s new owner, Penske Automotive Group. Owner Roger Penske signed an agreement to purchase Saturn from GM by the end of the third-quarter of 2009.

“This doesn’t require them to sign an agreement,” spokesman Steve Janisse said. “It’s just an informational piece talking about the terms of the sale and offering them an opportunity to transition to this new owner.”

Janisse told Automotive News that if Saturn dealers choose not to proceed, then they will go into “termination mode.” He said that Saturn waited to provide dealers with information on how to go forward because it first had to secure an MOU with Penske.

- By: Omar Rana

It was reported earlier this morning that GM has agreed to sell Saturn to Penske Automotive Group. GM has now confirmed the details of the proposed transaction in which Penske would acquire the Saturn brand, saving more than 350 dealerships and 13,000 jobs.

GM said that under the terms in the MOU, “Penske would obtain the rights to the brand as well as certain other Saturn assets. GM would continue production, on a contract basis, of the Saturn Aura, Vue and Outlook.”

The transaction is expected to be completed in the third-quarter of 2009.

Click through for the press release for more details.

Press Release:

Transaction would save more than 13,000 jobs; preserves renowned brand and retail network

General Motors, Penske outline proposed deal for purchase of Saturn

Detroit — General Motors Corp. and Penske Automotive Group today confirmed details of a proposed transaction under which Penske would acquire the Saturn brand. If completed, the deal would save more than 350 dealerships and 13,000 jobs at Saturn and its retailers in the United States, and would preserve the customer-focused Saturn brand.

The proposed transaction is part of GM’s rebuilding efforts outlined in the viability plan that was submitted to the U.S. government earlier this year. Under the terms in the memorandum of understanding, Penske would obtain the rights to the brand as well as certain other Saturn assets. GM would continue production, on a contract basis, of the Saturn Aura, Vue and Outlook.

“This is the combination of two iconic teams: Saturn and Penske,” said Saturn general manager Jill Lajdziak. “GM had the vision to create Saturn and has the desire to see it succeed in the future.”

“Saturn has a passionate customer base and outstanding dealer network,” said Roger Penske, chairman of Penske Automotive Group. “For nearly 20 years Saturn has focused on treating the customer right. We share that philosophy, and we want to build on those strengths.”

Saturn began selling cars in 1990 and has sold more than 4 million vehicles. More than 80 percent of those vehicles are still in operation, according to data from R.L. Polk. Saturn has regularly scored among the industry leaders for non-luxury brands in customer satisfaction surveys.

“There has been a groundswell of support for Saturn, with our retailers and owners urging us to save the brand,” said Lajdziak. “We heard their call loud and clear, and it inspired us as we worked to secure Saturn’s future.”

The transaction is expected to close in the third quarter of this year and is subject to customary closing conditions and regulatory approvals. Financial terms of the agreement will not be disclosed at this time.

- By: Omar Rana

A source familiar with the negotiations has told Bloomberg that General Motors will sell its Saturn brand to Penske Automotive Group. A final deal may be announced later today.

The source said that Penske will pay $100 million to $200 million for Saturn, winning over another bid by a group led by Oklahoma City-based private equity firm Black Oak Partners – so far known as Telesto Ventures.

Penske so far has two options after GM ends a contract to build Saturn models through 2011. The first is to provide the Saturn dealer network with Mitsubishi based vehicles. Secondly, Penske had recently been reported to be talking to Renault Samsung Motors. Co in South Korea, which is owned 80.1 percent by Renault. 

No final say on if Penske plans on using Renault Samsung’s current models or plans to use Renault’s platforms to build new ones.

- By: Omar Rana

Source: Bloomberg

Earlier today GM confirmed that it has a buyer for Hummer. During a conference call with reports, GM CFO Ray Young told reporters that the automaker has 16 buyers interested in purchasing the Saturn brand.

16 is a lot more than the two we’ve been hearing of including the Penske Group and Telesto Ventures, an investment group that includes private equity firm Black Oak Partners LLC.

No word on whether if GM has received offers for it Pontiac Solstice or Saturn Sky business, which it said the automaker would be open to selling in a separate deal.

So far we’ve heard that Mitsubishi wants to supply Saturn dealers with vehicles after the contract with GM expires. Penske is looking to bring in vehicles from Renault Samsung Motors, which is owned 80.1 percent by Renault and 19.9 percent by Samsung.

- By: Kap Shah

Source: Free Press

Earlier this month, Roger Penske of Penske Group hired former Chrysler co-president Tom LaSorda to consult him on a bid to buy Saturn and its dealer network from General Motors. According to Automotive News, Penske now plans on using the Saturn network to sell vehicles made by Renault Samsung Motors, which is owned 80.1 percent by Renault and 19.9 percent by Samsung (yes, the folks that own Samsung Electronics and manufacture cell phones).

The publications says that Roger Penske recently met with Renault and Nissan CEO Carlos Ghosn to discuss the plan in Paris.

No word on whether Penske plans on using Renault Samsung’s current models or plans to use Renault’s platforms to build new ones.

Renault Samsung currently uses Nissan platforms for its four passenger vehicles; SM3, which is based on the Nissan Bluebird; SM5 and SM7, which are based on the Nissan Teana; and the QM5, which is based on the Nissan Rouge.

- By: The Daily Auto Editor

Source: AutoWeek

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

Even with its June 1 deadline around the corner, General Motors continues to work on a new gasoline engine that runs like a more-efficient diesel unit. Known as the HCCI, the technology improves fuel-economy by 15 percent and releases fewer emissions – something that could help the future GM comply with the new proposed fuel-economy regulations announced by Obama.

HCCI, which stands for ‘homogenous charge compression ignition,’ works by igniting a mixture of air and fuel inside the engines cylinders and doesn’t use a spark-generated flame. The process uses less fuel and more air to generate power by using advanced technologies, direct injection, electric cam phasing, variable valve lift and cylinder pressure sensing.

While GM has been able to report a top speed of 60 mph with the HCCI in a Saturn Aura test-mule, there are still many challengers including controlling the process at high altitudes and high temperatures.

No word on when GM plans to have the HCCI technology ready but look for it sometime after the Chevrolet Volt.

- By: Omar Rana

Source: AutoWeek

Chysler’s ex-president has joined the Penske Automotive Group and will advise the company on a possible bid for General Motor’s Saturn brand, reports Automotive News. Penske Automotive spokesman Anthony Pordon confirmed that Tom LaSorda has been hired as a consultant on providing insight on the Saturn matter.

Tom LaSorda, 52, announced his retirement after Chrysler filed for bankruptcy protection on April 30th. Around the same time Penske Corp. Chairman Roger Penske confirmed that the company is studying the Saturn brand very closely.

LaSorda had left GM in 2000 to join Chrysler where he became CEO. He was replaced by Bob Nardelli in 2007.

GM, who is likely to face bankruptcy itself, is hoping to shed Saturn, Saab, Hummer and Opel before its government imposed June 1 deadline.

- By: Omar Rana