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)