Penske Automotive to buy Saturn from GM

DETROIT - General Motors Corp. and Penske Automotive Group have confirmed details of a proposed transaction under which Penske would acquire the Saturn brand. If completed, GM says the deal will save more than 350 dealerships and 13,000 jobs at Saturn and its retailers in the United States, along with preserving the Saturn brand.

The proposed transaction is part of GM’s rebuilding efforts outlined in the viability plan that was submitted to the government officials earlier this year. Under terms in the memorandum of understanding, Penske would obtain the rights to the brand as well as certain other Saturn assets. GM would continue production, on a contract basis, of the Saturn Aura, Outlook and Vue.

Jill Lajdziak, Saturn general manager, noted, “This is the combination of two iconic teams: Saturn and Penske. GM had the vision to create Saturn and has the desire to see it succeed in the future.”

Roger Penske, chairman of Penske Automotive Group, declared,  “Saturn has a passionate customer base and outstanding dealer network. For nearly 20 years Saturn has focused on treating the customer right. We share that philosophy, and we want to build on those strengths.”

Saturn began selling vehicles in 1990 and has sold more than 4 million automobiles. More than 80 percent of those vehicles are still in operation, according to R.L. Polk.

“There has been a groundswell of support for Saturn, with our retailers and owners urging us to save the brand,” said Lajdziak. “We heard their call loud and clear, and it inspired us as we worked to secure Saturn’s future.”

The transaction is expected to close in the third quarter of this year and will be subject to customary closing conditions and regulatory approvals. Financial terms of the agreement will not be disclosed at this time.