GM, Penske, and Saturn’s demise
Why neither General Motors or Roger Penske is saving GM’s once-hot startup brand
Saturn takeover talks with Roger Penske have fallen through.
(Corbis/James Leynse)
“The long, sad saga of Saturn is finally over,” said David Welch in BusinessWeek. The “once-hot General Motors division” had been in final takeover talks with “racing mogul” Roger Penske, who owns a giant chain of auto dealerships, but Penske couldn’t find anyone to manufacture the cars after 2011. GM really wanted to sell Saturn, but it “may have dodged a bullet” here—after 2011, Saturn would have been a GM competitor in a shrinking auto market.
Saturn’s demise is convenient for GM, but GM’s disappointment is “heartfelt,” said Andrew S. Ross in the San Francisco Chronicle. If GM and Penske both wanted a deal, though, “what, or who, was the straw that finally broke Saturn’s back?” Nissan’s board of directors, apparently, which reportedly balked at building Penske’s Saturns for him.
Boy, that must really “chafe” Roger Penske, who’s “among the smartest people ever in the car business,” said Steve Parker in The Huffington Post. Still, Saturn was “destined for failure” long before Nissan’s board killed Penske’s dream. Saturn was an “American phenomenon” when it launched in 1991, thanks to great PR and customer service and because it “built pretty damn good cars.” But GM stopped putting money in the brand years ago.
Saturn “couldn’t compete for a big enough share of GM’s limited financial and creative resources,” said Joann Muller in Forbes, but the “failed Saturn experiment” still cost GM an estimated $20 billion. As GM “struggles” to come back from the brink itself, perhaps it’s no surprise that it’s sending Saturn to join Oldsmobile, Pontiac, and maybe Saab and Hummer, in GM’s brand graveyard.
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8 Comments
Posted by Mark, Thursday, October 1, 2009, 7:50 am Saturn wasn't a failed experiment so much as it was an experiment that was given up on. From what I've read on its demise, the union leadership never really bought into the Japanesestyle decision making and flexible work rules, and when the chairman of GM retired the new guy didn't care for the project either. Once Saturn stopped being a different kind of car company, it was just an OK smallcar division, which is pretty much what Chevy was for.
Posted by Debbie, Thursday, October 1, 2009, 10:08 am It's a sad day for those of us who love Saturns. I purchased several over the years. An insurance agent recommended my first Saturn as my 16 year old daughter's first car. It was wellrated for safety with the added benefit of being less expensive to repair in the event of an accident. As a single mom, I loved the sticker price/final price, hasslefree purchasing. My 2001 VUE has 140,000 miles and has never needed a major repair. Saturn, you will be missed...
Posted by Aaron, Thursday, October 1, 2009, 12:02 pm Maybe Chairman Obama can hold a beer summit and resolve this crisis. Maybe he should call for legislation to make Saturn a national brand, kinda like the Yugo.
Posted by dj spellchecka, Thursday, October 1, 2009, 2:49 pm following on from mark's comment at 7 50 am....some other problems: the other gm car divisions saw saturn as a competitor, kinda like the way kids view the new baby...and once the new chairman took over, they didn't upgrade the saturn models for the better part of a decade....newsweek had an excellent story on the subject a few months back..i'd link, but i don't think the week's comments will print it correctly
Posted by Ken, Thursday, October 1, 2009, 5:31 pm Too bad. Saturn is a good car. HOLD A BEER SUMMIT. Funny, Aaron. Is it totally off the table, Penske, or is there hope? What really went wrong??
Posted by tim N.Y., Thursday, October 1, 2009, 7:32 pm Its a shame about Saturn but when GM stopped supporting them the way they did you could tell their days were numbered...While I never owned one I had a lot of friends that swore by them..I guess the next one to go is Hummer.
Posted by John, Friday, October 2, 2009, 8:11 am Of all the cars I've purchased over the the last 40years, my little Saturn Sport Coupe has been the best car I've ever owned. It's been the most reliable, the most economical to drive, maintain, and insure. It's also a pleasure to drive. I've had it 12 years and I'll continue to maintain it and keep it on the road as long as I can before sinking a small fortune into something else. Too bad things are working out the way they are. In my opinion, it's a big mistake to let Saturn die.
Posted by dj spellchecka, Friday, October 2, 2009, 11:59 am the newsweek article is called 'Saturn was Supposed To Save GM....Instead, GM crushed Saturn. Here's how.'.....By Paul Ingrassia ...it's in the Apr 13, 2009 issue....it's also online...worth the look
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