Penske Ends Talks to Buy Saturn From G.M.
DETROIT ? General Motors said Wednesday that it now planned to close its Saturn brand after Penske Automotive abruptly called off an agreement to acquire the division.
Penske said Wednesday in a statement that it could not proceed with the purchase because another manufacturer, which it did not identify, rejected plans to build vehicles that would be distributed under the Saturn brand name.
The deal between Penske and G.M. had called for G.M. to continue building Saturn vehicles only until 2011. Penske had initially hoped to close on a deal to buy Saturn as soon as this week.
?Today?s disappointing news comes at a time when we?d hoped for a successful launch of the Saturn brand into a new chapter,? G.M.?s chief executive, Fritz Henderson, said in a statement. ?We will be working closely with our dealers to ensure Saturn customers are cared for as we transition them to other G.M. dealers in the months ahead. I?d also like to thank every G.M. employee and Saturn retailer who worked so hard to try to make this new beginning happen for Saturn.?
Saturn is one of four brands that G.M. plans to eliminate in the United States. It is shutting down Pontiac by the end of this year, recently sold Saab to a company in Sweden and has a deal to sell Hummer to a Chinese manufacturer.
In a statement, Penske said that it had negotiated an agreement with another manufacturer to make vehicles; however, that agreement was rejected by that manufacturer?s board.
?Without that agreement,? Penske said in the statement, ?the company has determined that the risks and uncertainties related to the availability of future products prohibit the company from moving forward with this transaction.?When announced in June, the deal was heralded as a way to rescue Saturn and its dealers from the uncertain future they have faced since February, when G.M. announced plans to shut Saturn by 2012 if no buyer could be found. G.M. subsequently said it would discontinue Saturn by the end of this year.
G.M. said then that the move would preserve 13,000 jobs at Saturn and its dealerships. The company has 350 showrooms, virtually all built to sell only Saturn vehicles.