It's a shame GM has to let Saturn go. The brand has one of the freshest model lineups in the marketplace, some great designs, a European-based model or two and plenty of potential.
Despite the positives, Saturn has been dealt the same fate as corporate cousins Hummer and Saab. Best wishes were given, and all are now up for adoption.
U.S. based Penske corporation has made it official- they want to buy Saturn. The company is a transportation and logistics giant that's got their fingers into a bit of everything with between 4 and 18 wheels. Truck leasing and component manufacturing operations fall under Penske's umbrella, too.
Aside from a certain PR boost resulting from the preservation of thousands of jobs and a 20-year old brand, acquiring Saturn would allow Penske to further diversify. Diversifying typically makes good business sense for numerous reasons-- like economies of scale, expansion of knowledge and access to new markets.
Details are scarce as of yet, but with the limited information currently available, a few assumptions could be made.
First, Penske is nicely positioned to manage their own logistics and supply-chain demands-- potentially saving time and money. It's not unreasonable to think they could even use their trucking business to transport new vehicles to dealerships.
Penske is into racing, which is a great public relations tool-- so there could be some benefit there, too.
Moreover, Penske is a megadealer with 373 dealerships scattered all across the USA. But no Saturn dealership. This move, which could save up to 350 existing Saturn dealers, will effectively double Penske's dealership count.
GM would continue to build vehicles on a contact basis for Penske- but could the brand thrive under the new owner? Until we see Korean-made Samsung vehicles replace current GM products, that's anyone's guess.
Reaction for the press release:General Motors, Penske outline proposed deal for purchase of Saturn
Despite the positives, Saturn has been dealt the same fate as corporate cousins Hummer and Saab. Best wishes were given, and all are now up for adoption.
U.S. based Penske corporation has made it official- they want to buy Saturn. The company is a transportation and logistics giant that's got their fingers into a bit of everything with between 4 and 18 wheels. Truck leasing and component manufacturing operations fall under Penske's umbrella, too.
Aside from a certain PR boost resulting from the preservation of thousands of jobs and a 20-year old brand, acquiring Saturn would allow Penske to further diversify. Diversifying typically makes good business sense for numerous reasons-- like economies of scale, expansion of knowledge and access to new markets.
Details are scarce as of yet, but with the limited information currently available, a few assumptions could be made.
First, Penske is nicely positioned to manage their own logistics and supply-chain demands-- potentially saving time and money. It's not unreasonable to think they could even use their trucking business to transport new vehicles to dealerships.
Penske is into racing, which is a great public relations tool-- so there could be some benefit there, too.
Moreover, Penske is a megadealer with 373 dealerships scattered all across the USA. But no Saturn dealership. This move, which could save up to 350 existing Saturn dealers, will effectively double Penske's dealership count.
GM would continue to build vehicles on a contact basis for Penske- but could the brand thrive under the new owner? Until we see Korean-made Samsung vehicles replace current GM products, that's anyone's guess.
Reaction for the press release:General Motors, Penske outline proposed deal for purchase of Saturn