Penske Buys Saturn

Discussion in 'Economy' started by American Horse, Jun 5, 2009.

  1. American Horse
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    American Horse AKA "Mustang"

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    Lots of people in the Saturn sales force are elated at the news that (Roger) Penske has bought the Saturn Brand from the now 'ward of the government' General Motors.
    The good news may be that at least this fine automobile has escaped the clutches of Obama's car czar.

    "June 5 (Bloomberg) -- Penske Automotive Group Inc., an operator of car dealerships in the U.S. and U.K., won the bidding for General Motors Corp.’s Saturn unit as the biggest domestic automaker sheds assets in bankruptcy.

    The sale should close next quarter, Penske Auto Chief Executive Officer Roger Penske said in a conference call today, without giving the terms. The price will be in a range of $100 million to $200 million, said a person familiar with the talks, who declined to be identified because the deal isn’t complete.

    Unloading Saturn is a step toward GM’s goal of disposing of four of its eight U.S. brands while reorganizing in Chapter 11. Bloomfield Hills, Michigan-based Penske Auto will add Saturn as a wholly owned unit and must find a supplier of new vehicles.

    “We would expect to have a lineup manufactured by a worldwide partner,” Roger Penske said. “We have not made a transaction with any other manufacturer at this point. The ultimate goal would be to have those vehicles built in the U.S.”


    What does this mean do you think?
     
  2. auditor0007
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    auditor0007 Gold Member

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    It's really difficult to say what this will mean. To me, it is unfortunate that GM let Saturn go. I felt Saturn had become the second best line after Cadillac. The big problem is that this new Saturn will be a completely different Saturn as the sale does not include the plants where Saturns are manufactured. So they will now try to find another company to actually manufacture their vehicles. That could mean completely different models than the current ones.

    I had recently considered purchasing a Saturn, but that all changes now. It will be interesting to see how this unfolds.
     
  3. MaggieMae
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    MaggieMae Reality bits

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    I think it's great news. After all, Chrysler stayed alive in the late 70's, early 80's, by first selling off divisions to Daimler-Benz (sp.), and thereafer several other convoluted transactions which ultimately resulted in the U.S. getting all it's bailout money returned, plus a few million more just to pocket. Let's hope the same sort of thing can happen to shore up GM into a profitable company again and also return the money owed to taxpayers.
     
  4. American Horse
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    American Horse AKA "Mustang"

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    To me it means I have a choice of a good American car besides a Ford. We were prepared to buy a Honda next, which would've been our first foreign car after buying American made for 50 years of car (and truck) buying. I feel better about that option. But of course, as you say we'll have to see how this unfolds.

    Back when I used to buy Chrysler, I had a line I used to mock myself with when talking cars: I'd say "Once you own a Chrysler, you'll never own anything else.....(long pause then)...That's because no one will take it as a trade in."
     
    Last edited: Jun 5, 2009
  5. neurosport
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    neurosport BANNED

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    used Chryslers are literally not worth anything.

    been there, done that.
     
  6. STAND4LIBERTY
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    STAND4LIBERTY Independent Libertarian

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    Read a freakin' history book will ya? Chrysler MERGED (was bought out by) with Daimler-Benz (circa Bob Eaton) in the 1990's and secured federal loan guarantees in the early 1980's (circa Lee Iaccoca) .. if you're going to start quoting dates you might wanna make sure they aren't complete bullshit first.
     
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  7. DiveCon
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    why would they buy the car line and not the production also?
    that doesnt make sense
     
  8. Navy1960
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    Navy1960 Senior Member

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    Outstanding, this is good news and a wise one on the part of Penske in my opinion. With his distribution network and marketing ability as well as not being burdened with the bleeding divisions at GM hopefully Saturn can become a bright spot in this mess. I know that Saturn and GM share a lot of platforms so this also has to be good news for some of those suppliers out there to.
     
  9. STAND4LIBERTY
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    Are you kidding me? Saturn was the only bright spot in General Motors worth buying, hard to believe that good ole Roger Smith actually turned out to be rather visionary with his support of creating the division in the first place.

    Maybe ole fat bottom (Micheal Moore) owes Roger an Apology ? ;)
     
  10. Navy1960
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    Stand, I wouldn't hold my breath for Mr. Moore to do anything other than make up facts and perhaps for his next project he might after our healthcare has been given to us from on high, go back to Cuba with a real story!! As for Saturn my contention is that as long as it remianed with the GM brand it was going to be lumped in with the rest of the divisions of the company. I completely agree that Saturn was the only part of GM that had anything close to a sound business plan and now they are free to be an even better company.
     
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