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