Saturn Sale Takes Burden Off Of Chevrolet

For the past twenty-five years, Chevrolet dealers have had to endure what some felt was an untenable position — one where General Motors created the Saturn brand to compete against Toyota and Honda for small car buyers, a responsibility that they believed should have belonged to Chevrolet alone. Chevy dealers have long felt that this particular duty should have belonged to them exclusively and have long chaffed at GM investing billions in a car company that will soon be exiting the GM fold.

Now that it looks like the Penske Automotive Group will obtain rights to Saturn including the name, parts, distribution, but not production facilities, Chevrolet could finally find itself in better shape as GM sends the small car love to them alone.

Saturn will live on, but probably not in direct competition with Chevrolet as GM will source only some of the vehicles over the next few years while Penske seeks to build relationships with other automakers including Korea’s Renault Samsung entity. Likely, Saturn will become more like a “Best Buy” retailer where dealers sell cars built by a variety of other manufacturers, but under one roof.

GM To Supply Three Models

Initially GM will contract to build the Astra, Vue and Outlook for Saturn, but has made no promises to supply vehicles beyond those models nor provide updates for the same.

“This is the combination of two iconic teams: Saturn and Penske,” said Saturn general manager Jill Lajdziak. “GM had the vision to create Saturn and has the desire to see it succeed in the future.”

“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.”

Saturn first began building the “S” model at its own assembly plant in Spring Hill, TN in 1990. Since then, more than four million units have been produced, but the company has never been profitable. Originally established as a wholly owned company, GM eventually pulled Saturn into the company fold choosing to close century old Oldsmobile instead.

Source: General Motors

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