Report: GM agrees to sell Saturn to Penske Automotive Group

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