GM to sell Saturn to Penske

[Arnold]

GM to sell Saturn to Penske

Penske Automotive Group, owned by racecar legend Roger Penske, will buy GM's castoff brand.

NEW YORK (CNNMoney.com) -- Bankrupt automaker General Motors Corp. announced Friday that it will sell its Saturn unit to car dealership operator Penske Automotive Group.

Penske (PAG, Fortune 500) is owned by former race car driver Roger Penske, who owns NASCAR and IndyCar racing teams.

The deal gives Penske the rights to the 19-year old brand including its five different models. GM would continue production of only the three highest-selling models, including the Aura sedan, and the Vue and Outlook cross-over SUVs, for the next two years. The Saturn Sky and Astra models will be discontinued.

The deal, which GM expects to be completed in October, would save more than 13,000 jobs at Saturn and its roughly 350 dealers nationwide. All of Saturn's dealerships sell only Saturn vehicles, so they are reliant on the brand's continuation for their survival.

"There has been a groundswell of support for Saturn, with our retailers and owners urging us to save the brand," said Jill Lajdziak, Saturn's general manager. "We heard their call loud and clear, and it inspired us as we worked to secure Saturn's future."

Saturn's 51 Canadian dealerships are not part of the deal.

Penske said he wants Lajdziak to stay on at the company. He also offered former Chrysler President Tom LaSorda a top spot at Saturn, according to the Detroit News. Penske hired LaSorda in May as a consultant for the Saturn deal.

Lajdziak would not yet say if she would accept the position.

"My total focus every waking minute has been to get to this point, to get a memorandum of understanding," she told CNNMoney.com.

The sale is part of GM's strategy to shed its four "non-core" U.S. brands -- Saturn, Hummer, Pontiac and Saab -- as it restructures the company.

On Tuesday, GM (GMGMQ) announced a deal to sell its Hummer line to China's Sichuan Tengzhong Heavy Industrial Machinery Company Ltd.

The Saturn brand has been highly rated in customer satisfaction surveys for its no-haggle policy. Though Saturn sales have slumped badly this year, the brand actually far outsold Buick and Cadillac in 2008, when it was GM's fourth highest-selling unit. GM has sold more than 4 million Saturns since 1990.

Roger Penske told CNNMoney.com that he's "happy" to get Saturn's 3.5 million customer base, though it's too soon to start talking about global growth for the company.

GM has said it would stop producing Saturn vehicles by 2011. To replace GM as the brand's manufacturer, Penske is in discussions with several global automakers. One likely replacement is Renault Samsung Motors of Korea, Automotive News reported.

"We have been in discussions on a worldwide basis with many people that have an interest in this marketplace," Penske said.

Penske Automotive is one of the world's largest auto dealer groups, and it would be the first ever to own a brand that it sells. The company is the exclusive U.S. dealer for Smart cars, and currently sells over 40 brands at its 310 dealerships, half of which are in the United States. Shares of Penske rose 3% in morning trading.

source

 

[MtnBikerChk]

My first new car was a saturn - it was great. 1994 SL1. I put 110,000 miles on it in just under 5 years and she never let me down - never broke down, never left me stranded and I only had regular maintenance done.

And at the time, it was between that and a civic - the Saturn was cheaper. If they were going to close the brand I would have considered buying one on closeout as a third car in our house.

This is really cool news

 

[Arnold]

you should have bought the Honda, American cars are all shit.

 

[min0 lee]

My American Fords have been the best cars I ever owned.

 

[Arnold]

My American Fords have been the best cars I ever owned.

of all American cars I actually like Ford, however Toyota, Honda, Lexus and Acura are in a different league, its a fact, the Japanese build better cars.

 

[MtnBikerChk]

you should have bought the Honda, American cars are all shit.

You can't be serious. I just told you about a great experience I had with a car and you're telling me I bought the wrong car because it's "shit."

okkkkkkkkkkk

I could have told you about the explorer I owned which was nearly hassle free- but it had a neat tissue dispenser! My Pathfinder has been way more reliable though.

 

[min0 lee]

If I had the money to throw away I would prefer a German car, they retain their looks and are built better.

Some Japanese models are overrated and if you really look at their styling it can get old fast, unless it's a model that they copied from the Germans.

 

[min0 lee]

I am hoping that they remake GM into a better brand, it's good for the country and good for our pride.

 

[maniclion]

If I had the money to throw away I would prefer a German car, they retain their looks and are built better.

Some Japanese models are overrated and if you really look at their styling it can get old fast, unless it's a model that they copied from the Germans.

Yes our BMW's are the best cars we've had, every other car we bought new there was a little something that would break within the first few months, be it a Window Motor (Honda), CD Player(Nissan 2X), Lock Actuator(Nissan), Indicator Light on Dashboard(Nissan). Not one little thing on these yet. When you lose money because you had to take your car in for little shit, paying a little more for Better Engineering makes since....

 

[KentDog]

My American Fords have been the best cars I ever owned.

Same here, but then again, I have only ever owned and primarily driven Fords. My 96' Taurus has lasted me with no major problems since 2001.

Many so-called "foreign" cars are made in the U.S. nowadays anyway. Toyota, Honda, Mitsubishi, Subaru, BMW, Mercedes-Benz, Nissan and Hyundai all have plants in the United States. More foreign cars sold in the U.S. were built in the U.S. rather than imported (since 2005).

 

[Arnold]

Many so-called "foreign" cars are made in the U.S. nowadays anyway. Toyota, Honda, Mitsubishi, Subaru, BMW, Mercedes-Benz, Nissan and Hyundai all have plants in the United States. More foreign cars sold in the U.S. were built in the U.S. rather than imported (since 2005).

they are "assembled" in the US, that is all, lets not confuse that with the rest of the car making process.

 

[Arnold]

You can't be serious. I just told you about a great experience I had with a car and you're telling me I bought the wrong car because it's "shit."

okkkkkkkkkkk

yup, so the fuck what? it went 110k, big fucking deal, yes it's still a piece of shit and will most likely die in the next 20k miles.

 

[nkira]

But I like Japanese cars, BMW n AUDI n Toyota too.....

 

[min0 lee]

they are "assembled" in the US, that is all, lets not confuse that with the rest of the car making process.

It's not the people who put them together, it's above that. It's the designers who make poor decisions, it's the cheap material like the plastic that cracks.....it's upper management.

 

[Arnold]

It's not the people who put them together, it's above that. It's the designers who make poor decisions, it's the cheap material like the plastic that cracks.....it's upper management.

I have yet to find a "design flaw" or "cheap material" used with my Toyota.

 

[min0 lee]

I have yet to find a "design flaw" or "cheap material" used with my Toyota.

I am talking about American cars.

I am not a fan of all Toyota's though, I like Honda's but kids are killing that car with the Fart and ferocious look they add to it.

 

[Yanick]

My American Fords have been the best cars I ever owned.

Fix
Or
Repair
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My first car was a 97 Infiniti I30t aka Nissan Maxima. I bought it for around 7k with 145k miles on it (supposedly all highway miles but carfax revealed like 4-5 previous owners). I drove it for about three years to over 200k miles. Total money spent on repairs, excluding maintenance and damages I caused? $115 for a burnt wire to my MAF which required a swap of the main harness. Spent 1 day at the mechanics and came back good as new. I wound up totalling that car against a curb to avoid an accident when a douchebag cut me off.

I drove two BMW's after that and now I drive an 04 Camry. My bimmers were total shit boxes. AC would have ADD, dome lights would have multiple personalities, starters would be moody (not to mention you gotta drop the damn engine to get at the starter on 91-97/98 3 series'). Tons of problems, when I got rid of my last BMW, a 328is, it would stall out on cold start (so you had to hold the throttle until it warmed up), the radio buttons didn't work (it was just stuck on 1 station at a specific volume), the windows wouldn't close all the way (rimless windows) leading to the dome light staying on all the time, AC/Heat stopped working completely, amongst others that I can't even remember. I sold the car with ~120k on the odometer. Best car I've ever driven though, never had more fun behind the wheel of anything...from a pure driver's perspective. I just couldn't put up with the problems anymore, I'd take a weekend to get something fixed and two days later, as though there was a schedule, something else would break.

 

[tallcall]

I like my Hyundai Santa Fe. 2 years and 46,000 miles in and my only repair has been a faulty blower motor for my AC - and that was covered completely by the 10 year/10,000 mile standard warranty. It's been a good car, I think my Buick drove nicer, but replacing those window motors, the power driver seat, addressing gas tank issues, etc, made it pretty cost prohibitive. And when I add my new ScanGauge 2 (On board computer reader and display) to my Hyundai, it will have the exact same features my old Buick had that I loved minus the craptastic GM added hassels I loved to hate!

 

[Arnold]

I like my Hyundai Santa Fe. 2 years and 46,000 miles in and my only repair has been a faulty blower motor for my AC - and that was covered completely by the 10 year/10,000 mile standard warranty. It's been a good car, I think my Buick drove nicer, but replacing those window motors, the power driver seat, addressing gas tank issues, etc, made it pretty cost prohibitive. And when I add my new ScanGauge 2 (On board computer reader and display) to my Hyundai, it will have the exact same features my old Buick had that I loved minus the craptastic GM added hassels I loved to hate!

all of these cheap cars with 10 year 100k warranties will basically die after 100k miles, Toyota and Honda don't need to market with extensive warranties because everyone knows they will go at least 200k without any major problems.

 

[tallcall]

all of these cheap cars with 10 year 100k warranties will basically die after 100k miles, Toyota and Honda don't need to market with extensive warranties because everyone knows they will go at least 200k without any major problems.

I agree, I'd like a Honda, but I need something I can actually fit in - CRV's are too small and I think their largest model is just too pricy for my budget. I'd love to get a Civic but the interior is too small and too low for me. I work with what I'm given. My car happened to fit my desire to go fast and piss people off, budget and size requirements.


.....I still love my brother's Acura - small coupe I can barely get inside of, but great little car, basically runs on rice!

 

[Chubby]

I agree, I'd like a Honda, but I need something I can actually fit in - CRV's are too small and I think their largest model is just too pricy for my budget. I'd love to get a Civic but the interior is too small and too low for me. I work with what I'm given. My car happened to fit my desire to go fast and piss people off, budget and size requirements.

I thought that bigger cars are supposed to have more head space than smaller cars but that is not the case. I noticed when I drive my Accord, I have more space between my head and the roof. But when I drive my friends Pathfinder, there was very little space between my head and the roof. I had to bend my head little down to drive the car. It was very frustrating experience. I would rather have a smaller car with a more head space than bigger car with small head space.

 

[I Are Baboon]

yup, so the fuck what? it went 110k, big fucking deal, yes it's still a piece of shit and will most likely die in the next 20k miles.

Way to act like a dick, Prince.

 

[min0 lee]

Fix
Or
Repair
Daily

Never buy a used BMW.

 

[min0 lee]

I thought that bigger cars are supposed to have more head space than smaller cars but that is not the case. I noticed when I drive my Accord, I have more space between my head and the roof. But when I drive my friends Pathfinder, there was very little space between my head and the roof. I had to bend my head little down to drive the car. It was very frustrating experience. I would rather have a smaller car with a more head space than bigger car with small head space.

I always thought the older Pathfinders were over rated, the interior is way to narrow....

 

[min0 lee]

I thought that bigger cars are supposed to have more head space than smaller cars but that is not the case. I noticed when I drive my Accord, I have more space between my head and the roof. But when I drive my friends Pathfinder, there was very little space between my head and the roof. I had to bend my head little down to drive the car. It was very frustrating experience. I would rather have a smaller car with a more head space than bigger car with small head space.

I always thought the older Pathfinders were over rated, the interior is way to narrow....

You want an example of a small big car, the VW beetle.
If it can fit tall Germans than you know it has a big interior.

 

[danzik17]

Just give me something nimble and fast, I dont care about space for the most part.

Would like a BMW 1 series or an M series, but that's way down the road. It would also be tempting to buy a Mini Cooper S and mod the hell out of it, that could be a fun car to drive.

 

[Yanick]

Min0, yeah I agree with you on that one. Plus NYC roads are not conducive to sporty suspension set ups. Balls joints and strut mounts are expensive and a PITA to fix.

Danzik, Mazda Miata's are pretty fun cars to drive as well. Cooper S on stick is also cool but a bit too small and uncomfortable for me. I drove my bosses for about an hour 1 day coming back from the city and I had aches and pains by the time I got out. Surprisingly, the Infiniti G and M35's are pretty fun to drive cars too. I remember valeting an infiniti, driving it around then getting out and actually having to make sure what I was driving because it felt zippy and pretty tight around corners, also you get the luxury stuff like heated seats, navigation and such.

 

[Arnold]

Way to act like a dick, Prince.

Thanks!

 

[maniclion]

Way to act like a dick, Prince.

That's not acting,

 

[maniclion]

Would like a BMW 1 series or an M series, but that's way down the road. It would also be tempting to buy a Mini Cooper S and mod the hell out of it, that could be a fun car to drive.

I got the 1 series, was gonna get an M3 but wanted to spend more on the X6 as our going everywhere else car and the 1 series as my drive to work car.......

The 128i is a fun car to drive, it hulls ass pretty well, handles well, gets looks from chicks well......But the X6 makes all those X3 owners feel cheated.....I pull up next to an x3 or x5 and the owner is always staring with a look of, why couldn't they make all the X's that sexy? Why did I buy this boxy, every other SUV look-a-like?