GM to Sell Saturn Rather Than Phase it Out

[Z-06]

[source: MotorAuthority]

GM Confirms It Will Sell Saturn Rather Than Phase It Out

Phased Production Halt Likely in August If No Suitable Buyer Found Before July

Below is the official statement from GM:

General Motors is proceeding to the next step with respect to the sale of Saturn. A number of potential buyers have surfaced and expressed interest in the Saturn brand and retailer network. GM will be reviewing expressions of interest from the potential buyers and will look to secure an agreement with a specific buyer later this year. S.J. Girsky&Co. has been retained by GM as advisor for this transaction. Saturn will continue to keep its retailers updated on its progress throughout this process.

General Motors is proceeding to the next step with respect to the sale of Saturn, confirming today that it is in talks with a number of potential buyers and that it will look to secure an agreement with a specific buyer by the end of the year.

While no other details were revealed, late last month we heard about a new investment group by the name of Telesto Ventures reportedly planning to buy Saturn outright and source its own models from several overseas suppliers. Under Telesto's proposal, the overseas models would not be branded as Saturns, but would rather be sold under various brand names.

A spokesman for the investment group has previously mentioned that the Saturn brand would become "similar to a Best Buy model in that customers deal with Best Buy because of the customer experience not because they are the only place to buy a Samsung or a Sony TV".

GM manager Jill Lajdziak has also revealed to Automotive News that the struggling Detroit 3 carmaker was trying to find a new vehicle supplier for Saturn by September 1. Furthermore, Lajdziak confirmed that GM will halt production of Saturn vehicles in August, should a suitable buyer not appear by July. There will not be a blanket halt on all production, however, as the altered production volumes will "depend on the model and the level of inventory".

[gm4life]

Okay so they will sell Saturn and not Pontiac? How dumb is GM?

[Daryl Z71]

Now the question is will someone buy it?

[saturnd00d]

Okay so they will sell Saturn and not Pontiac? How dumb is GM?

I guessed you missed the part about how GM started Saturn as a different entity with it's own seperate sales channel and business model. Pontiac is not set up that way.

[daves87rs]

Well, I'm not sure that there will be a buyer....

[Teh Ricer Civic!]

If only i had the money to buy up Saturn...

[avant1963]

Okay so they will sell Saturn and not Pontiac? How dumb is GM?

There is a lot of money in Pontiac Heritage, just on the T-shirts and Die-casts alone. You want to sell that? Keeping the Pontiac name (just like Oldsmobile) is the smartest thing GM has done in the past 2 years.

How much money is in the S-Series die-casts? Lots of people displaying them on their shelves, huh? Did they ever even make one?

[hyperv6]

It is plain and simple the Saturn name and Dealer network are worth more than the cars.

IT would be so simple for a car company from China to come in and set up shop in the already establised dealer network with an ewstablised name and staff.

The Saturn cars are worthless. Also many in the public do not have Saturn as a GM on their minds as much. The Pontiac dealers that stand alone if the number is correct is at 35 so selling them off would leave little to who ever buys them in a dealer network and the car at Pontiac are not worth buying by the public let alone a coperation. The entire line needs updated accept for the G8.

The big problem is how much GM wants for Saturn and who would really want to start a car company in this economy. You would have to be nuts till people start buying again.

[hyperv6]

There is a lot of money in Pontiac Heritage, just on the T-shirts and Die-casts alone. You want to sell that? Keeping the Pontiac name (just like Oldsmobile) is the smartest thing GM has done in the past 2 years.

How much money is in the S-Series die-casts? Lots of people displaying them on their shelves, huh? Did they ever even make one?

The funny thing is they did make 1/18 Saturn Diecast. They used to sell them at the dealers. Auto Art made a real nice one but they were not great sellers.

The big key is there is equity in the older names. GM at times has pondered the return of Lasalle several time. and could return a limited run of Pontiac at a later time. The niche thing could come back years form now when they can afford to do it right [maybe]. Odds are not good it will ever happen but it would remain a viable option.

I would not be suprised to see at least a Pontiac bases show car 20 years from now if GM survives that long.

Edited May 5, 2009 by hyperv6

[Robert Hall]

The funny thing is they did make 1/18 Saturn Diecast. They used to sell them at the dealers. Auto Art made a real nice one but they were not great sellers.

I remember those. I have a nice 1/24 Saturn Sky diecast, and the Opel GT variation, as well as a Pontiac Solstice, all by Maisto.

[PurdueGuy]

There are S-Series diecasts.

Ion

Vue

L-Series

Sky

But, I doubt there is much money in Saturn collectibles, so the point stands.

[SAmadei]

The Saturn cars are worthless. Also many in the public do not have Saturn as a GM on their minds as much. The Pontiac dealers that stand alone if the number is correct is at 35 so selling them off would leave little to who ever buys them in a dealer network and the car at Pontiac are not worth buying by the public let alone a coperation. The entire line needs updated accept for the G8.

GM does not own the Pontiac or BPG dealerships to sell. So, in actuallity, GM is selling the dealer contracts/licensing. If GM sold Pontiac, the dealers would have the option to stay with the new buyer or leave. Having a non-GM brand selling at a BPG dealer is nothing new... a lot of BPG dealers are combined with non-GM brands. My local BPG dealer also has Mitsubishi.

Don't matter. Killing Pontiac will be a death sentence for 90% of the remaining Buick-GMC dealers unless they get a new, non-GM brand. That's how our local Olds dealer survived... now they are BMW-Honda.

[A Horse With No Name]

Okay so they will sell Saturn and not Pontiac? How dumb is GM?

...do we even need to answer that?

Chris

[Chicagoland]

So, Pontiac loyalists would buy Chinese cars with Pontiac names on them? LOL, yeah right.

GM makes $$ with licencing of old brand names for tpys, aftermarket, restoration parts, etc.

GM is better off doing that, to help the collector car hobby, than slapping arrow badges on Chevy Aveos/Cobalts and calling them Pontiacs. Better to just remember how it was, instead of thinking time can go backwards.

As for Saturn, it is able to be stripped from GM and they can sell cars made in Russia or Viet Nam for all I care.

[Robert Hall]

So, Pontiac loyalists would buy Chinese cars with Pontiac names on them? LOL, yeah right.

Well, they already have a S. Korean turd with the Pontiac badge on it now.. Daewoo, Chery, whatever...

Edited May 5, 2009 by Cubical

[Chicagoland]

I havent seen any G3's anywhere except on dealer lots, collecting dust and acid rain. There was a dealer trying to sell G3 for $15000! Does it have a 400 Ram Air VIII in it???

[haypops]

Now the question is will someone buy it?

There are numerous bona fide offers for Saturn including:

Penske said to be considering bid for GM's Saturn

[BuddyP]

IT would be so simple for a car company from China to come in and set up shop in the already establised dealer network with an ewstablised name and staff.

And that's what scares me the most. Sounds like the 60's all over again when the Japanese company's used Detroit funded dealerships to take a foothold in the country.

[Daryl Z71]

GM does not own the Pontiac or BPG dealerships to sell. So, in actuallity, GM is selling the dealer contracts/licensing. If GM sold Pontiac, the dealers would have the option to stay with the new buyer or leave. Having a non-GM brand selling at a BPG dealer is nothing new... a lot of BPG dealers are combined with non-GM brands. My local BPG dealer also has Mitsubishi.

Don't matter. Killing Pontiac will be a death sentence for 90% of the remaining Buick-GMC dealers unless they get a new, non-GM brand. That's how our local Olds dealer survived... now they are BMW-Honda.

One dealer around here has a GMC, Pontiac, and Subaru Dealership.

[Camino LS6]

One dealer around here has a GMC, Pontiac, and Subaru Dealership.

He's in deep trouble...

[Daryl Z71]

He's in deep trouble...

Whys that?

[pow]

It's unlikely, but I hope it's PSA or maybe even Renault. A Saturn C6 or Megane would be lovely.

[Camino LS6]

Whys that?

Surviving as a dealer with just GMC and Subaru would be close to impossible.

[Daryl Z71]

Surviving as a dealer with just GMC and Subaru would be close to impossible.

Oh crap your right believe it or not I had never even thought about that. They are supposed to be a nice dealership that put no pressure on you when you are dealing with them. I would have went there when I was looking at new trucks, but they didn't have any Sierras that I liked.

[PONTIAC06]

yeah, one near here is BPG-Honda-Saturn. Wonder how long it will take to be BGH. or just H. you never know. Local one will be Chevy-BG-Cadillac in no time at all I'm sure. Too bad they just spent a bunch of money doing a new entrance for each sales channel and displays for each brand.

[rkmdogs]

How much money is in the S-Series die-casts? Lots of people displaying them on their shelves, huh? Did they ever even make one?

I donno' ---- but I've got 4 different ones!.... made by several different companies!

[Drew Dowdell]

Surviving as a dealer with just GMC and Subaru would be close to impossible.

Maybe he'll pick up Mitsubishi or Mercury.

[Daryl Z71]

Maybe he'll pick up Mitsubishi or Mercury.

I was down by that dealer the other day and I didn't notice before, but he also sells Buick. So his lineup will be GMC, Buick, Suburau.

[gm4life]

If Buick gets big enough that dealer, maybe okay. Hell all the BPG dealers without Pontiac will hurt. I can't even think about selling just Buick and GMC products.

[vonVeezelsnider]

If Buick gets big enough that dealer, maybe okay. Hell all the BPG dealers without Pontiac will hurt. I can't even think about selling just Buick and GMC products.

That's an even more ominous prospect in Canada where GMC does about as well comparatively buy Pontiac is waaay more popular than Buick.

[Daryl Z71]

Yea Kinda hard for me to still see him surviving with just Buick.

[Chicagoland]

I will believe that Saturn is 'rescued' when the ink is dry and Penske gets some products built under contract. Till then who knows?