Penske Group likely to buy Saturn.

Bill in Utah

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Roger Penske is NOT a stupid man. He is prob one of the BEST in motorsports and auto biz. Very interesting... I'd bet he WOULD make it work.
 
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The Saturn brand was advertised for years before it became a reality. Some of it's followers aren't actually aware of it's GM heritage ( [censored]?). Even with their quirky engines with the oil consumption and all, they have quite a following. It would be a huge wasted effort if this just went down the [censored]? I've grown fond of the guy they're using to sell their cars on television now and I hope they make it! There is a huge segment of buyers that could care less about the car and just want some "wheels".
 
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 Originally Posted By: Bill in Utah
Roger Penske is NOT a stupid man. He is prob one of the BEST in motorsports and auto biz. Very interesting... I'd bet he WOULD make it work.
Detroit Diesel was on the ropes when he took it over in the 1980s and he did a major turn around. He did it with largely the same white collar and evil UAW people that were working there when it was going down the toilet. Turns out it was a management problem...GM. The engineers I knew that worked there thought Penske walked on water. Unfortunately, even if Penske gets control of Saturn, all that will be left will be the dealership network and some Saturn badges to stick on some imports.
 
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 Originally Posted By: XS650
Unfortunately, even if Penske gets control of Saturn, all that will be left will be the dealership network and some Saturn badges to stick on some imports.
Don't forget that Opel (GM Germany) was just purchased by Magna International, and the Astra is sold through Saturn dealerships currently, and the next generation Opel Corsa was to be sold at Saturn stores as well. Don't be surprised if you see Opels make up the majority of Saturn models in the not too distant future.
 
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I think a brilliant joint venture would be Penske and Magna International buying Saturn and GM Europe. Really, what should have happened with this bailout is the government should have made GM declare bankruptcy and split into General Motors North America and General Motors International. They could operate as a joint venture for development, GM International could be owned by Penske, Magna, shareholders, etc. and only operate the Saturn brand in the US. There could be shared engineering in some products for things such as powertains, but they would sell the GM International product line. GM North America would be the Chevrolet/Buick/GMC/Cadillac lines and dealerships, and handle the US, Canada and Mexico manufacturing and sales operation. GM International would probably operate as a seperate entity financially and scrape by, and GM North America would declare bankruptcy to restructure. Give the pension fund a chunk of the company, renegotiate present contracts, cut where needs to be cut and if the government truly had to bail them out, take the money, re-negotiate the pension liabilities to a fair level where nobody starves to death but it is reasonable, and give GMNA a line of credit to cover that at a low rate ongoing until the liabilities are retired.
 
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Cool. Penske has a rather large shipping terminal on Saturn Parkway, adjacent to Interstate 65. I wonder if it will see any additional use due to this Penske purchase. Penske built that terminal because of the Saturn plant. My how times have changed and how the roles have reversed.
 
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 Originally Posted By: XS650
 Originally Posted By: Bill in Utah
Roger Penske is NOT a stupid man. He is prob one of the BEST in motorsports and auto biz. Very interesting... I'd bet he WOULD make it work.
Detroit Diesel was on the ropes when he took it over in the 1980s and he did a major turn around. He did it with largely the same white collar and evil UAW people that were working there when it was going down the toilet. Turns out it was a management problem...GM. The engineers I knew that worked there thought Penske walked on water. Unfortunately, even if Penske gets control of Saturn, all that will be left will be the dealership network and some Saturn badges to stick on some imports.
And Penske sold DD to DCX who managed to screw them up and let Cummins steal their thunder. Doesn't Penske also run the Smart franchise for Mercedes too?
 

Bill in Utah

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 Originally Posted By: nthach
Doesn't Penske also run the Smart franchise for Mercedes too?
Yep
 
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Saturns really aren't bad cars, I don't see why GM just wants to throw the brand away if no one buys it. Saturn has to be in the top 15 of cars sold in the US, with a few changes it could definitely make some money.
 
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 Originally Posted By: AcuraTech
Saturns really aren't bad cars, I don't see why GM just wants to throw the brand away if no one buys it. Saturn has to be in the top 15 of cars sold in the US, with a few changes it could definitely make some money.
It's losing money.
 
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Help me understand...will Penske have a way to do anything with the existing platforms? Could there be a 2011 Sky, Outlook, etc? Or will he have to source all his platforms from Opel and rebadge them? It'd be a shame to see their newest stuff killed off. I've always thought the Sky is a stunner, and they finally made the Vue into a very nice looking SUV. I'd be sorry to see them round-filed.
 
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 Originally Posted By: tenderloin
"It's losing money". Almost all are losing money including Toyota. Tough times in the auto business. Heck tough times in may businesses
Would Toyota be in the red today had they decided a few years back, to keep doing what they had been successful at for so many years..... instead of taking the path that they did (trying to be the next GM), and seeing slipping quality, and having questionable product rollouts such as the Tundra? If Toyota had stayed the course, they likely wouldn't have seen the large losses that they did.
 
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 Originally Posted By: ViragoBry
Help me understand...will Penske have a way to do anything with the existing platforms? Could there be a 2011 Sky, Outlook, etc? Or will he have to source all his platforms from Opel and rebadge them?
The Sky isn't a Saturn platform. It's the GM Kappa platform which included the Pontiac Solstice, Saturn Sky and Opel Gt which is nearly identical to the Sky. I would be surprised if GM kept a boutique car like the Solstice/Sky/GT in production with all their other problems biting them in the nether regions. Even the Saturn Sheeple haven't been buying many Skys.
 
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 Originally Posted By: ViragoBry
Help me understand...will Penske have a way to do anything with the existing platforms? Could there be a 2011 Sky, Outlook, etc? Or will he have to source all his platforms from Opel and rebadge them? It'd be a shame to see their newest stuff killed off. I've always thought the Sky is a stunner, and they finally made the Vue into a very nice looking SUV. I'd be sorry to see them round-filed.
Basically GM has to dump brands, if you read the article it is clear GM wont support Saturn past 2010 even if no one buys it. Penske is buying empty dealerships basically and a 1 year run of current Saturns(note Sky and Pontiac Solstice are gone already) and then will rebadge So Korearn Samsung Motors cars as Saturns. Easy to understand. He must be gettting it on the cheap because he isnt buying any plants, tooling, design or Engineering from GM, nor product after a year or so. He is getting a nameplate.
 

PT1

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This is truly good news for the US auto industry. Roger Penske will make it work and no doubt create a vertically integrated auto-dealership company. Watch for the stock IPO because if RP puts his "golden touch" on this company it will zoom. Nice to see another option for tired former GM consumers like myself. I am very pleased with this announcement. We can still get a "GM like" vehicle without participating in Government Motors. \:\!
 
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Dumping the Saturn brand is just another example of the diseased brain cells of the clueless posse that "runs" GM. Marketing 101 says you need an entry level product for new buyers as well as an economy line for your older set. Many households have an "extra" vehicle for kids away at college as well and most up here get them a new car to avoid the maintenance hassle. I think the Saturn plant could be working a lot of overtime if management could try and get the product mix right.
 
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