Possible sale of Saturn

[pope]

Detroiter Roger Penske is thinking of buying the Saturn line and distribution chain. He did not say he would build Saturns, but that the dealerships and locations are enticing, for what ever he has in mind.

[mdrburchette]

Good grief, with all the stuff Roger Penske's into, I bet he could put a manufacturing plant and dealerships to good use. Have you seen the list of business interests he's associated with?

[pope]

Denise, I know all that he's into. MIchigan International Speedway is his also.
I use to go up to his First Chevy dealership and look at the new cars when I was young.

[So Cal Mark]

Saturn shares most of their parts now with other GM models. This has been one of the problems that has led to the imminent demise. The dealer assoc is negotiating to buy the brand from GM to try and keep it going. Even the happy factory workers have voted to join the UAW. Not a rosy future at all

[pope]

That Saturn dealer Association is called Telesto Ventures and I dont see that happening. If fact, in 30 days, many of those dealers wont be around.
Fiat will received 35 million if talks breakdown with Chrysler

[So Cal Mark]

the latest update on Fiat/Chrys is that the hedge funds that own Chrys debt won't sign off on the bankruptcy and want a chance to bid on the assets.

GM thinks so highly of Saturn that they are figuring to just shut it down Saturn unless someone jumps up to buy it.

[pope]

The reason they wont sign off is that they are secured debt holders, (meaning that they are to get back their money first before anyone else). Obama told them they could only have 29¢ on the dollar and they told him to take a hike and they want this to go to bankruptcy court. They are pissed because Obama gave the unions a major portion of the company, and wanted the debt holders to give up their claim, which is against the law but we'll see how the courts view this.
Chrysler is totally out of money and I am not sure they will survive in any fashion. Court have given other potential buyers until May 20 to come forward with a proposal, which is impossible in that time frame.

Another possible sticking point is that I would think GM and Ford would be ready to file a lawsuit against the UAW in that being a major shareholder of a competing company, they could not bargain in good faith their members contracts, possibly forcing them to sell their portion of the company.

[mdrburchette]

http://www.forbes.com/2009/05/05/chrysl ... sness.html

If I were Fiat, I'd seriously consider backing out of this mess.

[jimincalif]

http://www.forbes.com/2009/05/05/chrysl ... sness.html

If I were Fiat, I'd seriously consider backing out of this mess.

Agreed. Considering the political strings and UAW strings they'd have to deal with, plus all Chrysler's other issues, I wonder what positive outcome they see in this. Hope Sergio knows what he's doing.

[pope]

Well, you'll probably head today or next Monday that Roger Penske and a group of investor will be buying Saturn. Saturn has the newest assembly plants and dearship building.

[So Cal Mark]

Rogers' plan is not to BUILD Saturns, but to rebadge Samsung cars as Saturns and use his new dealer network to sell them. No big loss, I think Saturns are crap

[pope]

Hes gotta sell Saturn Aura sedan and Vue and Outlook SUVs on a contract basis for at least two to three years, and he says he has no agreement with any manufacture yet but has interest from several, If he goes with foreign imports then thats a dealership I wont be going to.
Maybe he can move all his dealerships to California. His plan is to manufacture the cars here from Asia but not initially.

[So Cal Mark]

the deal is for GM to build Saturns for two years, Penske did not buy any factories or tooling, only existing parts and cars. Over the next two years he will source deals for rebadging imports. Go Penske, save American jobs!