Bankrupt automaker General Motors Corp. announced Friday that it will sell its Saturn unit to car dealership operator Penske Automotive Group. Penske 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: the Aura sedan, and the Vue and Outlook crossover SUVs, for the next two years. The Saturn Sky and Astra models will be discontinued. Penske, which has no Saturn dealerships in its network, will act only as a distributor for Saturn cars and parts to the brand's dealer network. Like almost all car dealerships in the US, Saturn dealerships are independently owned businesses. Penske has no plans to open any Saturn dealerships, said Anthony Pordon, senior vice president at Penske Automotive. The arrangement is similar to the deal under which Penske distributes Daimler AG's tiny Smart car in the United States. Penske does operate a small number of its own Smart dealerships, however, in addition to handling wholesale deliveries of the car to other dealerships. 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. The sale is part of GM's strategy to shed its four “non-core” US brands - Saturn, Hummer, Pontiac and Saab - as it restructures the company. On Tuesday, GM (announced a deal to sell its Hummer line to China's Sichuan Tengzhong Heavy Industrial Machinery Company Ltd. 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 indicated that the post-GM brand will focus on fuel economy. An expert said that move would likely return Saturn to its more successful roots of a lower-end, competitive-priced car company. Still, much will depend on the quality of cars that it sells. “It's really going to depend on who Penske partners up with,” said Jeremy Anwyl, CEO of Edmunds.com. “Even if it sells good, global-standard vehicles, Saturn will need to stand for more than just the retail experience.” Anwyl said Saturn had not been hitting its sales targets as it moved to better
