GM Reaches Deal To Sell Saturn to Penske

[DriVer]

From the pages of "Yahoo News"

By David Bailey – 1 hr 53 mins ago

DETROIT (Reuters) – General Motors Corp has reached a preliminary agreement to sell its Saturn brand to Penske Automotive Group in a deal that could preserve more than 350 dealerships and 13,000 jobs, the companies said on Friday.

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[golden]

It was on the national news this afternoon. Interesting arrangement in that Penske will only sell Saturns, not manufacture them. He hopes to find another partner within two years. I thought it was also interesting that Saturn has never shown a profit. I love their cars, but how can they stay in bidness if they don't eventually make money??

[blacktie.shooter]

Quote:

Originally Posted by golden I thought it was also interesting that Saturn has never shown a profit. I love their cars, but how can they stay in bidness if they don't eventually make money??

Short answer: They can't. In a tv sound bite, Penske said they will make a profit. If it can be done (and I believe it can,) I think he can do it. At least, I hope so.

[Jim Stewart]

Once you get rid of the debt and burden of the Corporate overhead along with the new Union contracts, it could be profitable. He is also only buying a distribution network, not a manufacturing business. I for one would not be surprised if he eventually outsources the manufacturing to a third world country.

[DonavonP]

I'll bet Tata Motors buys the soon to be abandoned Dodge truck plant in Hermisillo MX and builds Saturns for Penske. Just my guess.

[DriVer]

Isn't the Springhill Assembly Plant in TN available? I believe GM shut it down. I like Saturn and I would even like it better if it were "Made in USA" and gave some of our auto workers back their jobs.

We should be through at this point is exporting our jobs. (exception Canada)

[RV Wizard]

Quote:

Originally Posted by DriVer Isn't the Springhill Assembly Plant in TN available? I believe GM shut it down. I like Saturn and I would even like it better if it were "Made in USA" and gave some of our auto workers back their jobs. We should be through at this point is exporting our jobs. (exception Canada)

The plant is available and there is hope that it will be reopened by one of the manufacturers after all the reorganizations are complete.

[skipwil]

My understanding was that the Spring Hill plant was converted to a truck mfg. plant and Saturn mfg'ing was moved to Kansas City and to a facility in the No. West. This info (for what it's worth) came from a Saturn dealer rep. If that's true no wonder GM"s now Gov't Motor Co . I've owned 3 Saturns now and really think it's a great vehicle for the money. The '95 would get 40mpg - the '00 gets 38+mpg and the '03 vue gets 32-35mpg.This is all hwy driving. Seems strange to make a car then that got decent milage and then turn around and mandate 28-32 on cars mfg'ed for 2012. But that's the politicians version of "we know more".

[DonavonP]

My 2006 Saturn Ion gets 37.6 mpg on the highway. Nice little car.

The current anti business and finance climate in the USA would drive most foreign investor/manufactures away from the USA but within Mid or South America for NAFTA privileges. (My Opinion)