Detroit -- A group headed by Detroit auto tycoon Roger Penske is the likely buyer of the Saturn brand and dealer network, The Detroit News has learned. An announcement could be made within 24 hours.
Negotiations between General Motors Corp. and the Penske group could continue into the weekend before a memo of understanding is reached, according to a source familiar with negotiations.
GM would not confirm that a sale is imminent, nor that Penske is the likely buyer.
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"Negotiations are literally going around the clock and we hope to have something to announce soon, but there is nothing to announce today," Saturn spokesman Steve Janisse said.
The Saturn negotiations involve pairing parties interested in Saturn's dealer network with one or more auto manufacturers interested in supplying vehicles that could be sold under the Saturn name.
Saturn had narrowed the list of potential bidders from about 12 to "two or three," according to a source familiar with the talks. At least one of the finalists is considering using Mitsubishi, and possibly others manufacturers, to provide vehicles, a source familiar with talks said.
GM hopes to conclude a deal by the end of the third quarter.
Penske has confirmed he is interested in acquiring Saturn's dealer network. Penske is the head of Bloomfield Hills-based Penske Automotive Group Inc., which operates more than 300 franchises in the United States and internationally, selling 40 brands. The billionaire Detroit booster also has exclusive U.S. distribution rights for the Smart minicar.
Penske could form a venture with Nissan, the Japanese affiliate of Renault SA, according to a source familiar with talks.
Another finalist is Telesto Ventures, which includes Oklahoma City-based private equity firm Black Oak Partners LLC and several Saturn dealers.
A Saturn agreement would cap a historic week for GM, which filed Chapter 11 bankruptcy Monday and announced a tentative deal Tuesday to sell its Hummer brand to Chinese-based Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd. GM said the Hummer deal, which includes the brand's senior management and operational team, could close by the end of the third quarter and would protect more than 3,000 manufacturing, engineering and dealership jobs across the country.
Meanwhile today, GM's efforts to transfer its best assets into a new company that would emerge first from bankruptcy is proceeding well and could happen on the early end of a 60- to 90-day timeframe, the automaker's chief financial officer said today.
CFO Ray Young also told Bloomberg Radio the automaker would consider selling the Pontiac brand, instead of phasing it out by 2010 -- which GM acknowledged would be difficult given the small number of stand-alone Pontiac dealers. There are only 35 such dealerships.
"It's not something we're actively discussing, but to Ray's point, everything's on the table," Pontiac spokesman Jim Hopson said.
Most Pontiac vehicles are sold at dealerships that also sell Buick and GMC brands, "so it would be difficult to have a functioning dealer network," if GM sold Pontiac, Hopson said.
GM plans to sell or phase out Pontiac, Saab and Saturn. The automaker filed for court protection from creditors Monday under section 363(b) of the U.S. Bankruptcy Code. The Treasury Department plans to buy the automaker's "good assets" and provide GM with an additional $30.1 billion to operate while in bankruptcy. That would boost the government's total investment in GM to $50.5 billion.
rsnell@detnews.com (313) 222-2028
Hope it goes, glad so far it's not going to the Chinese.
>>>For Sale? Clicky!<<<
-----The orginal Mr.Goodwrench on the JBO since 11/99-----
id love for someone to pick up pontiac and bring them back, i dont think it will happen though, performance isnt selling right now
1989 Turbo Trans Am #82, 2007 Cobalt SS G85
Deal has been reached, sold to Penske.
>>>For Sale? Clicky!<<<
-----The orginal Mr.Goodwrench on the JBO since 11/99-----
watch out he already delivers parts from the spo to the dealers.
see ya!
So what does this actually mean?
Penske brand Saturn cars? New saturn cars? Same old gm rebadges?
__________________________________________________________________
Where I work:
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Racing Saturns?
2004 Cavalier. Razzi. (Sold)
1998 Corvette. Some mods.
1992 Typhoon. Lots of mods.
1994 Civic VX 44MPG
Shift the rights of Saturn to Penske, and would continue the sale of the Aura, Vue, and Outlook vehicles under a contract basis with GM.
Although the deal could save more than 350 dealerships and 13,000 jobs, according to GM, it won’t save the slow-selling Saturn Astra hatchback or low-volume Sky roadster. Penske does intend to preserve the customer-focused mentality upon which Saturn was founded in 1990. “Saturn has a passionate customer base and outstanding dealer network,” said Roger Penske, chairman of Penske Automotive Group. “For nearly 20 years, Saturn has focused on treating the customer right. We share that philosophy, and we want to build on those strengths.”
The completion of the sale is expected to close in the third quarter of this year.
We will have to wait on the details later.
>>>For Sale? Clicky!<<<
-----The orginal Mr.Goodwrench on the JBO since 11/99-----
Maybe penske can keep the astra but improve fit/finish of the interior and throw the 2.0L engine in and maybe redline? LOL. I like the hatch astra but didn't like the anemic engine or the interior. If that changed, I'm sure it would sell way better IMO
So, wait, does this make Saturn an independent automaker?
I don't think anyone is going to have rock solid details yet
-Adam
01cavZ24 wrote:Maybe penske can keep the astra but improve fit/finish of the interior and throw the 2.0L engine in and maybe redline? LOL. I like the hatch astra but didn't like the anemic engine or the interior. If that changed, I'm sure it would sell way better IMO
Ditto that was my gripe. The fully loaded XR netted you less car for the same asking price as a loaded Cobalt SS. The car was marketed and priced all wrong.
"Formerly known as Jammit - JBO member since 1998" JBOM | CSS.net
