GM, Penske in Deal for Saturn

Saturn Blimp UnveiledDetroit — General Motors Corp. and Penske Automotive Group confirmed details of a proposed transaction under which Penske would acquire the Saturn brand.

If completed, the deal would save 13,000 jobs at Saturn and it would preserve the customer-focused Saturn brand.

The proposed transaction is part of GM’s rebuilding efforts outlined in the viability plan that was submitted to the U.S. government earlier this year and is now a part of GM reorganization plan submitted to bankruptcy court.

Under the terms in the memorandum of understanding, Penske would obtain the rights to the brand as well as certain other Saturn assets. GM would continue production, on a contract basis, of the Saturn Aura, Vue and Outlook.

The bottom line is that Penske gets a practically all new Saturn product line that is supported by loyal customers and 350 of GM’s best dealers. More than four million Saturns have been sold since 1990.

The transaction is expected to close in the third quarter of this year and is subject to customary closing conditions and regulatory approvals. Financial terms of the agreement have not been disclosed. But bet the farm that Penske will pay nowhere near the estimated $5 billion that it cost GM to create Saturn.

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2 Responses to “GM, Penske in Deal for Saturn”

  1. [...] http://aboutthatcarblog.com/archives/150GM would continue production, on a contract basis, of the Saturn Aura, Vue and Outlook. The bottom line is that Penske gets a practically all new Saturn product line that is supported by loyal customers and 350 of GM’s best dealers. … [...]

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