Roger Penske leads Saturn bidding

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From Left Lane News:

Several news sources are reporting that auto racing and new car sales mogul Roger Penske’s Penske Group is nearing a memorandum of understanding to purchase the Saturn brand from General Motors. Though neither party would confirm it, a report suggests that an announcement could be made as soon as 24 hours from now.

The Detroit News reports on its website that unnamed sources indicate negotiations could continue into the weekend before anything is signed.

The source said that one of Saturn’s handful of bidders - whittled down from the dozen or so GM had said were interested - would consider using Mitsubishi-supplied vehicles to keep Saturn going, but the source would not confirm the identity of that potential bidder.

Rumors indicate that Penske has been talking primarily to Nissan about using some of its products to create future Saturns.

GM brand clearance
The news comes just days after word that GM has sold Hummer to a Chinese manufacturing company.

Earlier today, Saab confirmed that it has enough cash on hand to continue operating until it finalizes its new ownership; the Swedish brand has two serious bidders - believed to be American investment firm Renco and Swedish automaker Koenigsegg - and it is also supposedly being pursued by Fiat.

Finally, GM said today that it could be willing to sell its Pontiac brand, which it had previously said it would close. Some analysts had predicted that GM would hold onto the historic Pontiac name, much like Oldsmobile, so that it could be used again in the future if the opportunity presented itself. Given the limited number of stand-alone Pontiac dealerships - just 35 - GM agrees that it could be difficult to sell the unit, but says it is willing to do whatever it takes to raise cash.

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DETROIT — General Motors Co. said Wednesday it would shut down its Saturn brand after an agreement with Penske Automotive Group Inc. to acquire it fell apart.

Penske, citing concerns of whether it could continue to supply vehicles after a manufacturing contract with GM ran out, ended talks with GM Wednesday to acquire the brand.

GM CEO Fritz Henderson said in statement that Saturn and its dealership network will be phased out.

"This is very disappointing news and comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality," Henderson said in a written statement. "PAG's announcement explained that their decision was not based on interactions with GM or Saturn retailers."

In a statement, the Bloomfield Hills, Mich.-based auto retailer says an agreement with another manufacturer to continue producing Saturn vehicles after GM stopped making them fell through, leading Penske to terminate talks with GM.

Penske said it negotiated terms and conditions to make Saturn cars with another manufacturer, but that company's board of directors rejected the agreement. Penske spokesman Anthony Pordon would not identify the other manufacturer.

"Without that agreement, the company has determined that the risks and uncertainties related to the availability of future products prohibit the company from moving forward with this transaction," the company said in a statement.

In June, GM and Penske agreed to take over the Saturn brand and related dealerships, although GM would produce the vehicles for a limited period of time.

GM said Saturn vehicle owners can still go to their Saturn dealer for service and would be able to go to a certified GM dealer for service once Saturn dealerships are closed.

It was expected that GM would announce the completion of Saturn's sale to Penske in the coming days.

Share of Penske fell $1.93 to $17.25 in after hours trading. They rose $1.32, or 7.4 percent to $19.18 in regular trading Wednesday.