Strong lineup not enough to save it
BY BRENT SNAVELY FREE PRESS BUSINESS WRITER
General Motors Corp. started its Saturn project in the early 1980s as an effort to develop small cars that could compete with Japanese brands.
From the beginning, Saturn was touted as "a different kind of company" and broke new ground with its no-haggle pricing policies at dealerships.
But Saturn struggled with a limited model range and an inadequate commitment to vehicle development. Recently, GM assembled what arguably is its best lineup ever, but it was too late.
Saturn's sales declined 21.7% in 2008 compared with an industrywide decline of 18%.
Here are highlights of Saturn's history:
June 15, 1982: Alex Mair, then vice president of what now is GM's advanced engineering staff, discusses a new, innovative small car project with several top engineers.
July 1982: Saturn is selected as the name for the project. The name was inspired by the Saturn rocket, which carried Americans to the moon during the space race with the USSR.
Jan. 7, 1985: Saturn Corp. is established as a wholly-owned subsidiary.
Jan. 29, 1989: Saturn announces franchise agreements with 26 dealers.
Oct. 25, 1990: First vehicles arrive.
Jan. 1994: Saturn reports a profit for the prior year.
June 1, 1995: Saturn's one-millionth vehicle is produced.
Aug. 15, 2002: J.D. Power and Associates rates Saturn No. 1 in its 2002 Sales Satisfaction Index Study.
Dec. 29, 2003: GM announces expansion plans for Saturn and says Saturn will double its portfolio from three to six products by 2007.
Jan. 9, 2005: Saturn unveils the Sky, a small, rear-wheel drive roadster that signals the new design direction.
January 2007: Saturn Aura midsize sedan is named North American Car of the Year.
December 2008: GM says it will "explore alternatives for the brand."
Feb. 16: GM Vice Chairman Bob Lutz tells trade publication Automotive News he isn't sure why Saturn failed. "We spent a huge bundle of money in giving Saturn an absolutely no-excuses product lineup, top to bottom," Lutz said. "The sales just never materialized."
Feb. 17: GM announces it will phase out Saturn after 2011 unless dealers can come up with a better alternative.
Wednesday: Black Oak Partners LLC says it has made an offer for Saturn's distribution network.
Sources: GM, Free Press research =====