GM accelerates Saturn shutdown to this year

[DainBramaged]

General Motors plans to build the last Saturn vehicles this year, two years earlier than first envisioned, as it speeds up efforts to shed dealerships and divisions, CEO Fritz Henderson said today.

The Saturn brand still may survive if GM can sell it to another automaker or investor, but GM no longer will build vehicles for Saturn after the 2009 model year, Henderson said on a conference call.

In its Feb. 17 plan submitted to the U.S. auto task force, GM planned to build Saturn vehicles through 2011. Under a revised plan announced today, GM will shed Pontiac next year, leaving the automaker with just four U.S. brands: Chevrolet, Cadillac GMC and Buick.

Henderson also said that GM no longer will build Hummer vehicles after the current model year.

No Pontiacs rebadged

No Pontiacs will be rebadged as Chevrolets, he said. The new G8 sports sedan will be dropped as will the Solstice sports car. Henderson said the Pontiac Vibe could be built into 2010, pending negotiations with manufacturing partner Toyota Motor Corp., which assembles the Toyota Corolla at a joint venture plant in California. (This is NOT what is being told to insiders)

GM has begun talks to sell Saturn to a private equity group working with Saturn dealers.

"If a sale of Saturn does not occur, we intend to phase out the Saturn brand by the end of 2009," GM said in its government filing today.

"As a result, our current Viability Plan does not comprehend production and sales to dealers of Saturn products beyond 2009."

Earlier this month, an investor group called Telesto Ventures said it wants to acquire Saturn's retail operations and provide dealers with vehicles from GM through 2011 and from mostly overseas manufacturers thereafter. A GM spokesman called the group's proposal legitimate and "very interesting." He said there also were other parties interested in Saturn.

A Telesto spokesman said his group was in discussions with several unidentified foreign manufacturers.

He said Telesto, which was formed specifically for the Saturn venture, encompasses a private equity firm, Black Oak Partners LLC, of Oklahoma City, and several other investors. It's unclear how much money is backing Telesto and what automotive experience it has.

Dealer reaction

John Danielson, sales manager at Saturn of the Lakes north of Orlando, Fla., said he has 100 new Saturns in stock. The store sold only eight new Saturns last month. Monday's announcement confirmed a rumor Danielson said he heard last week.

"Business is very tough right now. Our new and used is down 50 percent over last year," said Danielson. Some deals for new cars that have not yet been delivered are now in danger of falling through because of GM's announcement Monday that no new Saturns will be built after the 2009 model year.

Danielson, who worked at the store when it was an Oldsmobile dealership, said he expects GM to come out with new incentives to persuade customers to buy the final models

http://www.autonews.com/apps/pbcs.dll/article?AID=/20090427/ANA02/904279978/1078 (posted in full, subscription only)

[Ian David]

1. I had a Saturn once... it sucked. Ended up donating to charity after 100,000 miles. n/t

[MorningGlow]

2. That's too bad

I kind of liked their new hybrid SUV they were featuring at the new car show a couple of months ago.

But then I think of the Saturn 4-door I had in the early '90s. Sucker only made it to 80K before shitting the bed. :(

[Occam Bandage]

3. I had a 2001 Saturn. It was shit. I had put almost as much money

into repairs as I did into the actual purchase by 75,000 miles. The best thing that ever happened to it was when my sister borrowed it and totaled it.

[d_r]

4. we've gad several

my wife has had 3 saturns, I have a 2005 vue and it is a great car, I love it.

[Occam Bandage]

6. I'm glad you enjoyed them. I'm sure not all their cars are poorly made.

[DainBramaged]

5. It is amazing how threads like this turn into "I had one it sucked" or

"I had one it was great" instead of discussing the merits of losing this brand and it's affect on jobs around the country.

Lets talk about the swine flu!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[Occam Bandage]

8. I think Saturn was a brand without a niche or a stable image,

and as such, keeping it around is mistaken.

[SpartanDem]

7. This was needed

Saturn had become another me too brand that over lapped with other products such as the Aura/Malibu combo, while great cars there was no reason to justify the market overlap.

[spinbaby]

11. I think the Aura was a bad move

It was a vehicle that tried to be a luxury car without having a brand that anyone associated with luxury cars.

[blue_onyx]

9. Maybe I won't be able to get a Saturn

When I find a job, I was hoping to buy a Saturn but the job market isn't getting better so I probably won't be able to afford a new car before the brand is gone.

I don't disagree with the decision to close/sell Saturn. The brand is somewhat redundant with it's other brands: Aura=Malibu; Outlook = Enclave, Arcadia, Traverse. The Astra was a bomb. That only leaves the Vue (which I really like) and the Sky.

[flvegan]

10. How many US jobs is Saturn's close going to cost us?

I read that Pontiac was going to be 21,000, but I don't know if those are all US jobs.

This sucks.