How many jobs will Penske Automotive Group save if the planned purchase of Saturn goes through?”
Penske Automotive Group Planning to Buy Saturn GM has narrowed its potential buyers list for Saturn down to one, the Penske Automotive Group. According to the New York Times, GM will announce a sales agreement with Penske later today. Penske Automotive Group is led by Roger Penske, famous racecar driver. The Penske Automotive Group currently owns 310 car dealerships across the country as well as a truck rental company. Penske is also the sole U.S. distributor of the smart car brand. The sale to Penske will save 13,000 Saturn employees’ jobs, according to The Detroit News.The sale of Saturn will most likely have little effect on brand’s model lineup. According to the NYT, GM will continue to supply vehicles to Saturn immediately following the sale. The only big change we see in the immediate future is that Penske could use its national network of Saturn dealerships to sell smart cars. Don’t be too surprised if you see your local Saturn dealer selling the smart fortwo in the coming month
General Motors announced a proposed deal for Penske Automotive Group to buy Saturn, just two days after announcing an intended buyer for its Hummer brand. Penske is one of the largest dealer networks in the country. In a joint news conference Penske chairman Roger Penske and Saturn general manager Jill Lajdziak said the sale will save more than 350 Saturn dealerships and 13,000 related jobs. Under the agreement, Saturn stores will continue to sell the Aura sedan, Vue SUV and three-row Outlook SUV through at least 2011. Beyond that, trade publication AutoWeek has reported that Penske plans a deal to sell cars built by Renault-Samsung motors of Korea. In the press conference today, however, Penske said he hopes to continue building Saturns in the United States. The deal is expected to be completed by the third quarter of 2009. Once completed, it should resolve issues of where Saturn owners can get warranty service for their cars.
Bankrupt automaker General Motors Corp. announced Friday that it will sell its Saturn unit to car dealership operator Penske Automotive Group. Penske (PAG, Fortune 500) 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, including the Aura sedan, and the Vue and Outlook cross-over SUVs, for the next two years. The Saturn Sky and Astra models will be discontinued. 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.
