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GM to pull plug on Saturn line

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The Associated Press

Published: October 1, 2009

DETROIT - After a General Motors Co. agreement to sell Saturn to Penske Automotive Group Inc. fell apart, GM said Wednesday it would shut down the brand.

Penske, citing concerns over whether it could continue to supply vehicles after expiration of a manufacturing contract with GM, ended talks with GM on Wednesday.

GM Chief Executive Fritz Henderson said in a written statement that Saturn and its dealership network would 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 says. "PAG's announcement explained that their decision was not based on interactions with GM or Saturn retailers."

In a written statement, the Bloomfield Hills, Mich.-based auto retailer says an agreement with another manufacturer to produce Saturn vehicles fell through, leading Penske to terminate talks with GM.

Penske said it negotiated terms and conditions with another company to make Saturns, but that manufacturer's board of directors rejected the agreement.

In June, GM and Penske agreed to the transfer of the Saturn brand and related dealerships.

GM said Saturn vehicle owners will be able to go to a certified GM dealer for service once Saturn dealerships are closed.

The Tampa Bay area has at least five Saturn dealerships: Saturn of Brandon and Saturn of Tampa, both owned by the Ed Morse Automotive Group of Fort Lauderdale; and Saturn dealerships in Clearwater, Port Richey and St. Petersburg, all owned by Clearwater-based Lokey Automotive Group.

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