Let’s face it. Pretty much everything happening within GM is big news these days. But when legendary racecar driver and business mogul Roger Penske says he wants buy Saturn from the bankrupt automaker — that’s a top of the fold, front-page story. But, just in case you haven’t been following this deal from day one, we’ve got you covered.
So here it is Tuned.com’s guide to everything that’s happened, will happen and might happen between Penske Automotive Group and Saturn.
Ok, so what’s happened so far?
Penske Automotive Group and General Motors have signed a memorandum of understanding — basically a gentleman’s agreement on paper. MOU’s aren’t typically legally binding. In this particular case, the MOU says that if a deal goes through between Penske and GM, Penske will “obtain the rights to the Saturn brand, acquire certain assets including the Saturn parts inventory, and have the right to distribute vehicles and parts through the Saturn Dealership network.” Furthermore, GM will continue to produce the Vue, Aura and Outlook for an interim period that’s looking to be through 2011.
Just who is this Penske character anyway?
Really? You’re reading an automotive website and you don’t know who Roger Penske is? Shame.
Penske started out back in the late 50’s as a racecar driver. Competing and frequently winning in Sports Car Club of America (SCCA) events, Penske quickly made a name for himself as a talented racer. But, in 1965, much to the dismay of his fans, Penske announced his retirement from racing in order to focus on his car dealership.
From there, Penske expanded into ventures including, tire sales and trucking. Ultimately his success grew into the automotive empire he heads today. Penske Automotive Group is the second largest automotive dealer in the world, with more than 240 dealerships worldwide.
But Penske is perhaps better known for his racing teams. Penske Racing currently competes in the Indy Racing League, American Le Mans Series and NASCAR. Racing greats including Mark Donohue and Mario Andretti have raced under Penske’s banner leading his teams to a plethora of victories including 15 wins at the Indianapolis 500.
So when will Penske’s purchase of Saturn be official?
Impossible to say for sure, but both parties are looking to have the deal finalized by the third quarter of this year.
But Penske doesn’t manufacture cars, how are they going to make Saturns?
As mentioned above, GM will continue to produce the Vue, Aura and Outlook for Saturn through 2011. After that — or perhaps during that time, Penske will look for existing automakers that want to expand in the American market.
According to Automotive News, Penske recently met with Renault-Nissan CEO Carlos Ghosn in Paris to work out details of a potential partnership that could result in Renault-Nissan importing Renault Samsung cars from South Korea to be sold under the Saturn brand.
(To clarify — Renault, a French carmaker, is in a partnership with Nissan, a Japanese carmaker. South Korean company, Samsung — you know, like the TV’s and cell phones — was purchased by Renault in 1998 and is now a subsidiary of the French-Japanese company. Globalization at its finest.)
But, Motor Trend blogger Todd Lassa said in a recent post that although Renault-Nissan is the most likely partner, he thinks Penske will look to Nissan’s North American facilities as opposed to importing cars from South Korea.
“Nissan, with its unused capacity able to build various vehicles in the U.S., would be a prime candidate for reskinned compact or midsize cars bearing the Saturn badge around 2012 or ‘13. There’s plenty of room in Nissan’s North American facilities to avoid having to source them from Renault’s Samsung plants in South Korea, as some have reported,” Lassa said.
What about all those Saturn dealerships?
Penske said he will extend offers to any existing Saturn dealers who want to continue to sell new cars. Though whether all 363 dealerships will remain when all is said and done is impossible to say.
A quick note: Unlike so many other companies and divisions, Saturn trended away from over-saturating the market with dealerships. In fact, those 363 dealerships are owned by only about 150 franchisees, so the transition should be relatively painless with respect to dealership closings. Check out Saturn of Asheville NC, Saturn of Greenville SC, and Saturn of Spartanburg SC…we are here to stay!
