Business NEWS

General Motors kills fading star brand Saturn

By Bettina Padurano for CEOWORLD Magazine Updated:October 1, 2009

General Motors said Wednesday that it would shut down its Saturn division by next year after Penske Automotive Group abruptly cut off talks to acquire the brand.

Penske Automotive Group (NYSE:PAG) said Wednesday that it terminated discussions with GM to buy the auto brand following a tentative deal that was struck in June. Penske is the nation’s second-largest automotive dealership chain, including about 13,000 Saturn-related jobs and 350 dealerships.

General Motors CEO Fritz Henderson said the automaker will wind down the brand and dealership network in accordance with agreements Saturn previously had signed with the automaker.

“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,” Henderson said in a release.

Saturn, officially launched in 1990, featured the iconic tag-line “a different kind of car company” and people were attracted by its low-key showrooms and no-haggle pricing.

GM’s hope was that Saturn, with its dent-free plastic panels, would attract younger buyers with smaller, hipper cars. It built a new plant in Spring Hill, Tenn., devoted to Saturn vehicles.

Despite a cult-like following that drew thousands to annual reunions in Spring Hill, the brand never made money, although the company has never disclosed how much it invested or lost.

Related Reading:

Good to Great: Why Some Companies Make the Leap... and Others Don't

The Challenge
Built to Last, the defining management study of the nineties, showed how great companies triumph over time and how long-term sust... Read More >

Start Your Own Business

YOUR ROAD MAP to BUSINESS SUCCESS

From the editors of Entrepreneur magazine, this bestselling business startup book has helped hundre... Read More >

BusinessThe tenth edition of this best-selling introductory text features an up-to-date, comprehensive survey of the functional areas of business: management,... Read More >

The Secret Language of Business: How to Read Anyone in 3 Seconds or LessThe Secret Language of Business reveals the secrets of body language and nonverbal communication. Successful professionals need more than just good co... Read More >

Small Business For DummiesWant to start the small business of your dreams? Want to breathe new life into the one you already have? Small Business For Dummies, 3rd Edition provi... Read More >

Share this Post:

Sphere: Related Content

University of St.Gallen, Swiss Institute of Banking and Finance is looking for a Full Professor of Banking
Looking for a job? Got a position to fill? Check out the Job Board.

Hello there! If you are new here, you might want to subscribe to the RSS feed for updates on this topic.

Author : Bettina Padurano

Author's Website | Articles from Bettina Padurano

Like this article!

‹ Bear Stearns Asset Management Must Defend Bank of America Lawsuit BofA settlement frees former Merrill Lynch chief Robert McCann for UBS ›

Readers Rating:

(No Ratings Yet)

Loading ...

Popularity:
17184 views

Comments:
Comments

Leave a Comment:

Tagged with: Fritz Henderson, G.M, General Motors, General Motors Saturn, GM Saturn, Penske Automotive Group, Saturn

InvisableJunebug

I bought a new, lemon Saturn a few years ago. Three major problems, including that the transmission failed at 11 K miles. The parts aren't available, no one can maintain it but Saturn. Sorry guys, I bought a Ford truck, I need reliablity.

jrthekid

It's not a suprise that Saturn is done. I laugh when I hear that employees are stunned about the shutdown. How can you be stunned when you know that the products you deliver have been known to be some of the biggest piles of junk that are mass produced. I'm actually glad that Saturn is dead. Such a waste of the earth's resources. My sister in-law has been through three of them (and yes, I think she's stupid for it) and each car she has had is a POS. These things are built like tin cans. Actually, tin cans have more sheet metal built into them. Everything rattles after a year or so. And what STUNS ME is that she has the money to buy any car she wants, yet somehow chooses Saturn. I have never understood it and never will and actually won't need try to understand from this point forward. I am so happy that her next car cannot be a Saturn. That way I don't have to keep looking at a Saturn POS in our driveway.