Penske secures Saturn

The news late last week that Roger Penske, famous for his motor racing teams, has agreed to buy the Saturn brand and dealership network from GM could herald a new era in the car industry. With GM only committed to making its current range of Saturn vehicles for the next two years Penske has the perfect opportunity to cherry-pick the best models from around the world for his new American network.

Penske's business -- Penske Automotive Group -- is already the second largest car dealer in the United States and his interest also include importing Smart cars and teams in NASCAR, Indycars and Grand Am sportscars. His relationship with General Motors dates back to 1965 when he opened his first Chevrolet dealership and in 1988 he purchased Detroit Diesel from the manufacturer.

News of his interest in Saturn broke in early May (see here) and although the agreement last week is officially described as a "proposed sale" both parties are keen to close the deal quickly. Penske said it could be sealed as early as the third quarter of this year.

"Saturn has a passionate customer base and outstanding dealer network," Penske said. "For nearly 20 years Saturn has focused on treating the customer right. We share that philosophy, and we want to build on those strengths."

The first stage in the development of the new deal is the arrangement for GM to continue building the Aura sedan and Vue and Oulook crossovers on a contract basis for two years. That spells the end of the Opel-sourced Astra hatch and Opel-based Sky convertible.

When the GM deal expires Penske will be able to offer manufacturers not currently in the US market access to more than 350 dealers around the country. There have already been whispers Renault has engaged in talks with Penske and there has been speculation that Chinese or other European brands could also play a part in the reborn Saturn.

Although Saturn has never made money under GM ownership Penske is confident he can keep the company in the black. Given his history in business -- especially his recent success with the Smart brand -- it would be brave to bet against the man nicknamed 'The Captain'.

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