While GM is unsure about the future of its disappointing Saturn brand, the company is not allocating any cash on future products. In its plan that was submitted to Congress last week, GM said that it is “exploring alternatives” for Saturn which has performed below their expectations. Instead, GM said it will focus all its money and time on the Chevrolet, Cadillac, Buick and GMC brands.
Saturn’s next key product is a redesigned version of the Aura sedan due out in 2010. No word on whether that product will be delayed.
GM executives said that despite a strong vehicle lineup, Saturn sales have been weak. However, it seems that GM is not ready to give up just yet. According to Mark LaNeve, GM’s vice president of sales, service and marketing, closing Saturn would cost more than $1 billion in dealer buyouts alone.
According to a Saturn spokesman who spoke with Automotive News, a council of eight dealers will meet with Saturn and other executives later this week to discuss how to make the brand more profitable.
“Saturn has a product program, both current and future, that is currently in our plans,” LaNeve said. “But a lot of what is in our plans is in a state of flux right now given the state of the economy and everything.”