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Saturn Car Division To Close

October 1, 2009 Auto Manufacturer No Comments

All Saturn Dealerships Will Close

October 1, 2009 news wire and media reports that the GM Saturn Car Division will close.  Early information indicates that Roger Penske backed out of the deal at the 11th hour becasue of vehicle supply problems associated with Renault.

Shocking News

This is shocking news to the franchise dealerships.  Penske had been heralded as the modern day savior of the brand.  With the deal falling apart that some deals are impossible to bring together.

A Dealer’s Comments Revisited

Saturn Dealer SignI spoke to a multi-car-line dealer several months ago.  He expressed concerns about where Saturn was going but indicated that with Penske on board that the franchise would be a focused success. 

Harsh Reality

Reflecting on what this dealer said is indicative of the vision that many dealers had.  It is reasonable and realistic to think this way but the hash reality of what has happened means that more dealerships will close.

What is the Reality?

Closing dealerships have been addressed in the Automotive Tribune including Megadealer Bill Hurd to the Typical Hometown Dealership.  Saturn stores are unique since the first cars did not come off of the production line until July 30, 1990. 

Some of these dealerships represent newer facilities with millions of dollars of debt service.  With the Penske deal off the table GM will reassess what they pay the dealer to close.  It is unlikely that any dealer can be compensated for their loss.

Random Photos From Automotive Tribune Site

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