By Truman Lewis
ConsumerAffairs.com
September 30, 2009
Auto racer and magnate Roger Penske has canceled plans to buy the Saturn brand and dealer network from General Motors, most likely spelling the end of the ill-fated brand.
Penske Automotive Group said late today that an agreement with another, unnamed automaker to manufacture vehicles under the Saturn brand was rejected by that automaker's board of directors. Without that agreement, Penske said it was too risky to go ahead with the deal.
GM called the news "very disappointing" and said it would immediately begin "winding down the Saturn brand and dealership network."
The surprise collapse of Penske's plans means that owners of Saturn vehicles now have orphan cars. Although the short-term effect is limited to a plunge in the vehicles' value, over time orphan vehicles become hard to maintain as parts and trained technicians become scarce.
Saturn was one of the brands -- along with Pontiac, Saab and Hummer -- that GM decided to dump when it sought a government bail-out last year.
The Penske Group is the nation's second-largest auto dealership group, with 158 dealerships in 19 states and 152 outside the U.S. Penske Automotive is also the exclusive U.S. distributor of the smart fortwo, sold through 75 smart retail centers in the United States.
The Saturn dealer network and reputation had been highly regarded in the auto industry. Saturn began selling cars in 1990 and has sold more than 4 million vehicles. More than 80 percent of those vehicles are still in operation, according to data from R.L. Polk. Saturn has regularly scored among the industry leaders for non-luxury brands in customer satisfaction surveys.
