GM to Sell Saturn Brand to Penske

[Silverbird]

General Motors has signed a memorandum of understanding tosell its Saturn brand to former race car driver and auto dealer Roger Penske.
Penske, who owns the Penske Automotive Group [PAG 15.15 0.55 (+3.77%) ] dealership chain, told reporters on Friday that he plans to offer all 350 Saturn dealerships new franchise agreements. He says Saturn's 13,000 employees will stay on with the company for at least the immediate future.

http://www.cnbc.com/id/31122832

 

[CapeChem]

maybe smaller motor groups can produce a superior product......they will probably rebrand and start touting their workmanship ets,.... I think this is good

 

[James48843]

maybe smaller motor groups can produce a superior product......they will probably rebrand and start touting their workmanship ets,.... I think this is good

Penske is not a manufactuer- they are only a distributor/sales outlet. I'm not sure who will assume manufacturing in a Penske deal- but it won't be Penske.

One of the problems with Saturn is volume. You have to be able to produce huge volumes in order to be cost competitive.

I wish him luck. It might work- but we'll have to see what he does with manufacturing- I would guess that he will end up contracting the manufactuing of Saturn out to some third world country, and then it will be just another foreign import eating away at American jobs.

 

[CapeChem]

I guess I assumed he was buying the ability to manufacturer as well as sell.