Penske is pulling out of Saturn agreement, GM terminates the brand; Renault-Nissan possibly Penske`s partner

Posted on Thursday, 1 October 2009 , 11:10:32 byEmil

Filed under penskesaturngmrenaultnissanagreementp-a-goemSaturnGMNissanRenault

Penske is pulling out of Saturn agreement, GM terminates the brand; Renault-Nissan possibly Penske`s partner

The new owner of Saturn - Penske Automotive Group, decided pulling out of all the running negotiations. Saturn will unfortunately be discontinued, says GM official statement.

A few sources hinted curiously that the agreement was supposed to be finished up by this week, meaning that Saturn will live under the protective umbrella of Penske. The American group's reason to terminate the negotiations is 'because of the inability to source new products beyond what it had asked GM to build on contract'.

Saturn's plans of Penske depends on getting another builder to make future car — a critical piece of the puzzle that fell apart immediately when the directors of board rejected the idea involving the unidentified carmaker.
The manufacturer was, it seems, Renault-Nissan.

A spokeswoman from Renault stated, declining any other comment: 'Renault has been in contact with Penske to supply cars, parts and technology to Saturn through an OEM agreement. The conditions for an agreement have not been found'.

Chief executive officer of GM - Fritz Henderson said 'This is very disappointing news and comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality'.

'It’s devastating. Look what we have gone through in this town, look at what other dealerships have gone through in this town' affirmed Carl Galeana, one of the original dealers of Saturn and the owner of metro Detroit Saturn – Lakeside, Saturn of Warren dealerships. 'This is just another chapter of that'.

We bring you the whole statement that General Motors released, plus a few clarifications about the America-based automaker wants to do with the brand:

'Today we learned that Penske Automotive Group (PAG) has decided to terminate discussions with General Motors to acquire Saturn. This is very disappointing news and comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality. PAG’s announcement explained that their decision was not based on interactions with GM or Saturn retailers; rather it was because of the inability to source new products beyond what it had asked GM to build on contract.

As a result of PAG’s decision, we will be winding down the Saturn brand and dealership network, in accordance with the wind-down agreements that Saturn dealers recently signed with GM. Pursuant to the terms of those agreements, the wind down process will be determined and communicated shortly.

Saturn customers and owners will continue to be able to purchase and have their vehicles serviced at Saturn retailers during this process. Once the wind down is complete, Saturn owners will still be able to have their vehicles serviced at other GM dealerships. We will be communicating with our customers very soon to explain the next steps in this process.

Today’s disappointing news comes at a time when we’d hoped for a successful launch of the Saturn brand into a new chapter. We will be working closely with our dealers to ensure Saturn customers are cared for as we transition them to other GM dealers in the months ahead. I’d also like to thank every GM employee and Saturn retailer who worked so hard to try to make this new beginning happen for Saturn'.