Roger Penske is buying Saturn. No price was disclosed, but GM and Penske announced they have come to an agreement where Penske will take over the struggling brand.
GM had announced that it would shut the brand down by 2012. More recently, though, they said it shutter by years end if no buyer had been found. Interestingly enough, GM received bids from sixteen entities. Penske was the winner. The man has a knack for winning, his IRL team won the Indy 500 two weeks ago.
By purchasing the brand, Penske gets the 350 dealer network, the brand, three current models-which he will buy from GM, initially. He also gets the Saturn parts inventory. 13,000 jobs will be saved as well. That, though, seems dubious to me. While GM will initially supply the cars, he is expected to, later, purchase autos from Renault via Samsung Motors. What happens to those 13,000 jobs then? I’m thinking pink slips here, but I do not know that for sure. Just guessing.
Hummer has also been unloaded by GM. Sichuan Tengzhong Heavy Industrial Machinery Company has, reportedly, agreed to buy the brand. No price was disclosed, but ‘analysts’ speculate that it was for less than 500 million dollars. The Chinese company, located in Chengdu, would be the first Chinese company to sell autos in North America. Hummer’s operations would remain in the States.
With the sales of Hummer and Saturn, and the pending death of Pontiac, GM has one more brand that they are looking to unload: Saab. They currently have three bidders for Saab.
GM filed for bankruptcy protection earlier in the month.