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Today news came out that General Motors is considering parting ways with Pontiac, Saturn and Saab. It’s no secret that GM will likely have to cut more of their eight U.S. brands if federal assistance is to be granted by Congress. Another aspect of the business that GM is very eager to cut is their debt. At last report, GM was sitting on about $43 Billion in debt, but sources tell GMI that very little of that debt is secured by assets. GMI has also been told, well before the grave financial news, that Pontiac’s future is shaky at best. However GMI is now hearing that if GM were to dispose of the Saturn division, they could kill two birds with one stone.
As mentioned, most of GM’s debt is unsecured, but according to an article from the Chicago Tribune states that GM has a $1.5 Billion and $4.5 Billion revolving loan that are both secured by “equipment and assets of the Saturn brand.” Prior to about a year ago, GM’s Spring Hill, TN assembly plant was essentially the Saturn plant. Back when the division was created in 1985, that assembly plant was Saturn’s home. GMI has heard that along with most of the Saturn brand, that Spring Hill, TN plant is also secured in the debt. Currently that plant builds one vehicle; the Chevrolet Traverse. Due to the dwindling market demand of vehicles period, one has to wonder if GM could not easily start building the Traverse where its cousins are built; at the newly built Lansing-Delta assembly plant that produces all the other Lambda crossovers. The whole reason Spring Hill was selected to build the Traverse was so that it would have the capacity to meet the projected demand.
As the rumors have suggested, GM brass is looking at dumping Saturn. The interesting twist is that GMI is told GM is looking at working with the banks that GM has that debt secured with to take possession of Saturn. That would leave GM with one less brand and several billion dollars less in debt; secured debt at that. However it sounds as if it would leave them with one less assembly plant as well.
What would happen to Saturn if the banks took over the brand is largely unknown. Its assumed that the banks would sell Saturn to the highest bidder; which may not be an easy task in this global economy.
http://www.gminsidenews.com/forums/f70/gmi-exclusive-saturn-may-go-bank-71991/#post1576745
While it's obviously unconfirmed by official sources, it doesn't seem unlikely, either. Saturn has failed to do its job for a quite a while.
How do you folks feel about this? Does Saturn deserve another chance? Or can GM do without Saturn?
Today news came out that General Motors is considering parting ways with Pontiac, Saturn and Saab. It’s no secret that GM will likely have to cut more of their eight U.S. brands if federal assistance is to be granted by Congress. Another aspect of the business that GM is very eager to cut is their debt. At last report, GM was sitting on about $43 Billion in debt, but sources tell GMI that very little of that debt is secured by assets. GMI has also been told, well before the grave financial news, that Pontiac’s future is shaky at best. However GMI is now hearing that if GM were to dispose of the Saturn division, they could kill two birds with one stone.
As mentioned, most of GM’s debt is unsecured, but according to an article from the Chicago Tribune states that GM has a $1.5 Billion and $4.5 Billion revolving loan that are both secured by “equipment and assets of the Saturn brand.” Prior to about a year ago, GM’s Spring Hill, TN assembly plant was essentially the Saturn plant. Back when the division was created in 1985, that assembly plant was Saturn’s home. GMI has heard that along with most of the Saturn brand, that Spring Hill, TN plant is also secured in the debt. Currently that plant builds one vehicle; the Chevrolet Traverse. Due to the dwindling market demand of vehicles period, one has to wonder if GM could not easily start building the Traverse where its cousins are built; at the newly built Lansing-Delta assembly plant that produces all the other Lambda crossovers. The whole reason Spring Hill was selected to build the Traverse was so that it would have the capacity to meet the projected demand.
As the rumors have suggested, GM brass is looking at dumping Saturn. The interesting twist is that GMI is told GM is looking at working with the banks that GM has that debt secured with to take possession of Saturn. That would leave GM with one less brand and several billion dollars less in debt; secured debt at that. However it sounds as if it would leave them with one less assembly plant as well.
What would happen to Saturn if the banks took over the brand is largely unknown. Its assumed that the banks would sell Saturn to the highest bidder; which may not be an easy task in this global economy.
http://www.gminsidenews.com/forums/f70/gmi-exclusive-saturn-may-go-bank-71991/#post1576745
While it's obviously unconfirmed by official sources, it doesn't seem unlikely, either. Saturn has failed to do its job for a quite a while.
How do you folks feel about this? Does Saturn deserve another chance? Or can GM do without Saturn?
