Penske group likely to buy GM's Saturn

[Bozita]

Source: Detroit News

Thursday, June 4, 2009
Penske group likely to buy GM's Saturn
Robert Snell / The Detroit News


Detroit -- A group headed by Detroit auto tycoon Roger Penske is the likely buyer of the Saturn brand and dealer network, The Detroit News has learned. An announcement could be made within 24 hours.

Negotiations between General Motors Corp. and the Penske group could continue into the weekend before a memo of understanding is reached, according to a source familiar with negotiations.

GM would not confirm that a sale is imminent, nor that Penske is the likely buyer.

"Negotiations are literally going around the clock and we hope to have something to announce soon, but there is nothing to announce today," Saturn spokesman Steve Janisse said.

Read more: http://www.detnews.com/article/20090604/AUTO01/906040468/Penske-group-likely-to-buy-GM-s-Saturn

[Cirque du So-What]

1. You're not Penske material!

Sorry for the gratuitous Seinfeld reference.

I'm glad to see the Saturn business model continue. It had great potential when it began, but it got co-opted by GM groupthink somewhere along the line.

[Patsy Stone]

7. Ta-ta, Tut-tle!

:rofl:

[bleever]

9. Totally beat me to it.

I salute you.

[ellenfl]

14. where does it say the business model will continue? eom

[nolabels]

22. Actually it would be a nice fit

Team Penske is how Roger runs. In several ways it could be good thing for all involved.

[RamboLiberal]

2. Bet they would turn out some interesting cars n/t

[AndyA]

3. Customer service will SUCK.

Years ago, Penske bought all the Ford/Lincoln/Mercury dealerships in Tulsa. Every last one of them.

SERVICE WAS HORRID!

CUSTOMER SERVICE WAS INSULTING

It got so bad, that Ford Motor Company actually bought out Penske and things improved greatly.

RIP, Saturn. Penske will put you in the dirt in no time. :(

[Ikonoklast]

4. Roger Penske is loyal to one thing, making money.

He is a notorious penny-pincher when comes time to paying the help.

[rox63]

8. Too bad...

I have a 2005 Saturn, and it's been a great car. I was kind of sad when I heard that GM was going to discontinue the Saturn brand, because I'd gladly buy another one when the time comes. If these guys buy out Saturn, I hope they do well by the brand.

[sandyj999]

10. We love our Saturns

My husband has a 2005 Vue and I love my 94 SC. I leased it in 94 and when the lease was up I bought it. And due to the fact I just use it for short trips it just turned over to 45000 miles, today. I hope they do keep it and do some better advertising because I think they are a good car.

[rox63]

11. I have a 2005 Saturn Ion

I bought it new, and besides normal maintenance, it's only needed to be in the shop once. It's got about 55,000 miles on it, and I'd gladly keep driving it for years to come.

[Auggie]

5. Who would want to own a car company now?

Reminds of the adage for wine producers: How do you make a small fortune in the wine business? Start with a large one.

[shaniqua6392]

6. Penske came into my hubby's job working for Sears delivery years ago.

Then he fired every union member and brought in non union guys to do deliveries. We had just bought our house a few months before this and had two small children to support. Fuck Roger Penske. I feel sorry for anyone who works for him because they will not be in a union.

[A HERETIC I AM]

16. The members of UAW Local 163 might disagree with you.

Local 163 represents the workers at Detroit Diesel. In 1988, Roger Penske purchased Detroit Diesel from General Motors. GM was very close to closing the doors at DD as they has a 3% share of the heavy truck market and diminishing sales with the rest of their product line. Penske came in, turned the company around to the point it was so successful it was bought by Daimler.

The UAW still represents the assembly workers at DDC and even though Penske is no longer directly in charge, he certainly can be credited for saving over 2000 well paying jobs in Redford, MI.

[TheWatcher]

26. Is there NO ONE you will not be an apologist for?

:rofl:

Next you'll tell us The "Recovery" is real, The Recession is over, Thank God It Passed!!!!!1111111, Wall Street is Good, Monetization will work, etc.

Preach On, Jester!

[Psephos]

27. The Detroit Diesel story is true, regardless of what you think of Heretic

As usual, the black/white, evil/good template is a fail. Life is more complex than that.

[A HERETIC I AM]

28. Typical response from "Pat" to anything I have to say.

Pat answers.
Pat responses.
Attitude down Pat.

For someone who twice said "I'm through with the lot of you", ostensibly because everyone was not agreeing with a point of view, Pat has taken an awful long time to leave.

[nolabels]

30. The poster is also quite full crap bloviating about Penske being Union busters

Many parts of the Penske umbrella of companies have Unions involved. The part i work for has been a part of Teamsters for over thirty-five years

[newinnm]

24. That would be bad

If it could happen... Federal labor law prevents an employer from just firing all union employees and then hiring non union. If that were possible then every employer would do it.



-nnnm

[CreekDog]

12. They aren't Penske material

[sendero]

13. I hope Saturn survives....

... A long time ago I thought Saturns were just another GM piece of stuff.

I took a brief foray into the used car business after the dot com bust. I learned to love Saturns, simple reliable cars, nothing like what I had assumed.

[Romulox]

15. Unless he buys Opel too, I have no idea where his new product will come from.

"Saturn" is a name and a dealership network right now.

[blue_onyx]

18. I heard that he may create an alliance with Nissan Renault

to sell Renault vehicles under the Saturn brand.

Edit: I found a NY Times article that says:

"Under the terms of the deal, Mr. Penske, a former race car driver whose Penske Automotive Group is one of the largest dealerships in the country, will initially buy Saturn vehicles from G.M. But he is expected to eventually buy cars from other carmakers like Renault, through its Samsung Motors unit in Korea."

http://www.nytimes.com/2009/06/06/business/06saturn.html?_r=2&hpw

[Romulox]

21. Seems like it would be cheaper to buy a Nissan dealership then...

:shrug:

[Blue_Tires]

17. some years ago there was talk of Penske taking over all of GM

but it didn't happen...

[Bozita]

19. Update: Penske buying Saturn, dealerships; GM to build vehicles for 2 years

Friday, June 5, 2009
Penske buying Saturn, dealerships; GM to build vehicles for 2 years
Robert Snell / The Detroit News


Detroit auto tycoon Roger Penske, who has reached a tentative deal to acquire the Saturn brand and dealer network, wants to eventually build vehicles in the U.S. after initially importing from a foreign manufacturer.

Penske has signed a memo of understanding to acquire Saturn and its dealer network and the due diligence period will take 60-90 days. The deal will preserve 13,000 jobs and could close in the late third quarter, Penske told reporters this morning. Terms of the deal were not disclosed.

The deal includes the Saturn brand, the service and parts operation based in Spring Hill, Tenn., and a network of about 350 dealerships.

Penske said GM will supply vehicles on a contract basis for at least two years, at which point Saturn would import vehicles made by foreign automakers.

more...
http://www.detnews.com/article/20090605/AUTO01/906050434/Penske-buying-Saturn--dealerships--GM-to-build-vehicles-for-2-years

[DainBramaged]

20. Penske+employee pay +customer service =wealth for Roger

and a handful of shit for everyone else.

[nolabels]

23. As a guy that been employed by one of his enterprises i would bet you got it wrong

Though i have only worked there nine years i would classify the guy in the category of person who likes to make things work. A builder of things, if you must.
Sure he probably could use Ten-thousand dollar bills to wipe his ass, but i would also bet he doesn't :shrug:

[A HERETIC I AM]

25. As a guy that also worked for one of his enterprises in the 1990's, I agree wholeheartedly.

Roger does indeed "like to make things work" and he appreciates people who feel the same, who take pride in the work they do and who produce.

I mentioned in my post above him about stepping in at DDC in the late 1980's. I started working for a company owned 25% by RP and their offices were at the Detroit Diesel plant in Redford. While I didn't work for DDC directly, I was at the plant many, many days for 4 years straight an got to know many of the guys who worked the various lines as well as engineers and technicians who had been with DD for decades. The universal opinion was that GM was about to basically throw DDC away - close the doors because they couldn't compete with Caterpillar and Cummins.

Roger Penske came in and injected new life into that plant, revitalized a completely demoralized workforce and turned Detroit Diesel completely around, going from a 3% market share in the heavy truck engine space to over 33%.

It wouldn't surprise me at all if he made Saturn's Tennessee plant his pet project. He'll find an operator. Don't be surprised at all if it's either Honda or Toyota. (Penske Automotive Group is one of the largest Toyota retailers in the country)

[MercutioATC]

32. But...but....it's an AMERICAN car company!

:eyes:

[mdmc]

29. kick

[sarcasmo]

31. Saturn owners since 02, good to know I can still take my car to a Saturn dealership.