What in the World Happened to Lexus?

GM has 16 suitors for Saturn, no final decision in sight

 
31 19,158 views June 3, 2009

The investment group would use the Saturn brand to market several different vehicles sourced from foreign carmakers

The investment group would use the Saturn brand to market several different vehicles sourced from foreign carmakers

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General Motors is proceeding to the next step with respect to the sale of Saturn, confirming this week that it’s in talks with up to 16 potential buyers and that it will look to secure an agreement with a specific group by the end of the year.

Speaking at a press conference yesterday, GM executive vice president and chief financial officer Ray Young said he did not yet have a date for when a Saturn deal might be finalized. He then went on to characterize Saturn's suitors as some financial investors and certain parties with interests in distribution of vehicles.

"The challenge on Saturn is trying to figure out the business model which will allow us to continue selling vehicles to a prospective purchaser or having a prospective purchaser seek another source of product," Young said. "These are complex issues. This is why the process is taking longer."

While no other details were revealed, late last month we heard about a new investment group by the name of Telesto Ventures reportedly planning to buy Saturn outright and source its own models from several overseas suppliers. Under Telesto’s proposal, the overseas models would not be branded as Saturns, but would rather be sold under various brand names.

Also in the picture is Roger Penske, owner of the Penske Automotive Group. Penske confirmed last month that he has an interest in the Saturn brand and just last week his company hired ex-Chrysler president Tom LaSorda to advise on the bidding process. Like Telesto Ventures, Penske is keen to source models from an overseas supplier to sell in the U.S. through Saturn’s existing dealer network.

GM manager Jill Lajdziak has previously revealed that the struggling automaker was trying to find a new vehicle supplier for Saturn by September 1. Furthermore, Lajdziak confirmed that GM will halt production of Saturn vehicles in August, should a suitable buyer not appear by July.



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Comments (31)

  1. ma_Jim avatar Jim Posted: 12/8/2008 7:39am PST

    First you say you will and then you won't
    Then you say you'll do and then you don't
    So you're undecided now and what are you gonna do

    No confidence that this bunch can boil water never mind turn around a car company.
     
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  2. ma_iluvamericancarz avatar iluvamericancarz Posted: 12/8/2008 1:22pm PST

    leave rick wagoner. die saturn. die gmc. who needs all three of 'em
     
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  3. ma_adamk avatar adamk Posted: 12/8/2008 4:17pm PST

    This is exactly why the Big Three don't deserve our money. Their Titanic continues to sink, yet they still hope to re-arrange the deck chairs (otherwise known as brands). GM has at least three brands too many for the North American market: Saturn, Pontiac plus GMC (re-badged Chevy trucks) or Buick (only popular in China). Ford and Chrysler also have too many brands.

    I know closing dealerships cost money, but how many times can these corporations try to reinvent brands like Chrysler, Mercury and Pontiac which simply don't resonate compared to Honda, VW and Toyota - to say nothing of BMW, Lexus and Audi! And why does Chrysler need any money when it's backed by one of the world's biggest private equity firms?

    Congress, hold firm. It'll be for the best ultimately.
     
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  4. ma_MBZCLKGTR4 avatar MBZCLKGTR4 Posted: 12/8/2008 7:09pm PST

    I don't understand why GM wants to get rid of Saturn. Pontiac and GMC make sense to drop, but Saturn actually seems to have relevance, their problem is not advertising the Astra enough. I've seen millions of ads for the ugly-a** Pontiac Vibe and the now-pointless GMC brand, but I have never seen a single commercial on TV advertising the handsome little Astra.

    In my mind, Saturn has way more relevance than Buick (2 of 3 models from which are just rebadged Chevys).
     
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  5. ma_adamk avatar adamk Posted: 12/8/2008 8:30pm PST

    It would certainly be ironic if Saturn -- the brand created from scratch to battle the "imports" because GM (in a rare lucid moment) recognized the rest of their stable was too tainted -- were to be killed off while long comatose Pontiac, Buick and others remained on life support indefinitely.

    With the exception of the Sky roadster, Saturn's lineup are just re-badged Opels/Vauxhalls. Perhaps this is what GM should have done from the start, rather than trying to beat the Japanese by creating an all-new brand and product line, only to let the whole thing erode for years before discovering that the corporation already made half-decent products in Europe where the small car market was far more competitive.

    Bottom line: two to three mainstream GM brands (not just fringe-serving Hummer and Saab) need to go, plus maybe one from Ford and one from Chrysler. Only then will I feel my tax money will have made a lasting difference.
     
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  6. ma_mburleigh8 avatar mburleigh8 Posted: 12/24/2008 6:25am PST

    At least try to keep the Sky, even if it is a chevy sky instead of a Saturn.
     
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  7. ma_westy1974 avatar westy1974 Posted: 12/24/2008 6:32am PST

    not sure where they get there are 3 models
    But turning Saturn around will be no simple task - currently the ailing brand has just three models in its lineup and combined sales of less than 80,000 units a month.

    Last I checked there were 5 - Aura, Astra, Sky, Outlook, Vue.
     
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  8. ma_NaBUru38 avatar NaBUru38 Posted: 12/24/2008 11:33am PST

    Sadly for Saturn, the Corsa E is too far away. They need smaller crossovers too.
     
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  9. ma_HECTOR avatar HECTOR Posted: 12/25/2008 3:36am PST

    The Sky, beautiful as it is, is also an Open clone (started as the VX220 many years ago).

    GM continues to hope to prepare to plan for a turnaround. I know the dire consequences of these companies failing but they just have no freaking idea of how to go forward. The same bunch of useless idiots (I'm looking at you Bob Lutz) that ran the company into the ground are still there, making bad decisions and millions of dollars.
     
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  10. ma_LisaV avatar LisaV Posted: 12/27/2008 1:25am PST

    I watched the Congressional hearings and thought at the time that the Senator who joked with the GM ceo that Saturn was the future of GM, did a disservice. Now pride has entered the equation. Saturn should be amalgamated. The Astra and Aura can’t reasonably compete with the offerings from Hyundai and should be dropped. The Sky is clearly redundant when a Solstice can conceivably be optioned with suspension and aero body clad options. The Vue is the good one that used to have the Honda V6, but adding the Outlook? How does that make any sense even on the face of it! And just to confuse the consumer more, they throw out the Equinox. All for a quick, right now volume buck.

    People really want to buy domestic but you want to think that they’re giving you their one best product. I will compare it to the Porsche business model, where they keep the 911 and work on it year after year. You get the impression they have confidence it’s the best design and that every square inch is worked over with a fine toothed comb. We just want to know that we are getting the right one, the best one, the proven one; that we’re not just patsies.
     
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  11. ma_NaBUru38 avatar NaBUru38 Posted: 12/27/2008 3:04pm PST

    "The Sky is clearly redundant when a Solstice..." Agree on that. "The Astra and Aura can’t reasonably compete with the offerings from Hyundai and should be dropped." If that was right, then why is Opel so strong in Europe?
     
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  12. ma_LisaV avatar LisaV Posted: 12/28/2008 6:55pm PST

    Even without the smoke and mirrors, faux store fronts and the fake badging - Even if the dealership said OPEL, and we were talking about a Vectra V6 turbo; it still wouldn't be enough to stand alone. Too little too late.

    Look, Mitsubishi is struggling with its Lancer, and they have the Evo X! Fiat or Alfa Romeo would likely have a better chance at
    profitable sales. They have name recognition and heritage, and arguably, better cars. But we don't see them scrambling to open separate dealerships. They would likely have to team up and
    amalgamate with other dealerships.

    To be fair, I haven't driven the Astra and Aura. Possibly the Astra is better than the Aveo and would be the head to head keeper. And I would like to see a comparo article of the current Saturn and Hyundai V6 cars. I have driven the Ion and Sonata. Ion: a cheap interior with a ride like the shocks are 15 years old already. The Sonata: miles ahead, night and day.

    It's just that I see Hyundai as having so much momentum and focus. What they did with the Tiburon alone. I hear the new Sonata is better still and I see them springing up in local driveways. Not so with the bargain ride Saturn. I just don't think that Saturn can compete easily with Hyundai going ahead. They've got too far behind. I'm not saying it couldn't be done, but I do not think GM is deep enough in talent to do all these things at once.
     
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  13. ma_samuelesm avatar samuelesm Posted: 1/25/2009 6:28pm PST

    I think Wagnor should be fired. Why does everyone think he shouldn't be fired? The reason GM is failing is because he didn't fire the UAW. He did that because his father told him to treat the factory workers well because they build the cars. I think that he shouldn't be so nice to them because they just put the parts together nothing special like designing and engineering. Also, GM doesn't do much advertising when they have decent cars with good mileage that last long. GM just needs a makeover and they need to drop some brands. It is sad to see the Saturn Sky never do well.
     
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  14. ma_NoNameDenton avatar NoNameDenton Posted: 1/25/2009 7:42pm PST

    samuelesm that is a stupid comment, you can not fire the UAW.
     
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  15. ma_54chevyman avatar 54chevyman Posted: 1/26/2009 6:02am PST

    If the Saturn vehicles are re badged Opels and the Pontiacs are re badged Cars from down under then Opel is the best choice for a partnership. Pontiac can be absorbed by Saturn and then Saturn can replace Pontiac and GMC along side Buick. That's it keep the Opel engineering and give the Australians one car and add it to either Buick or Chevy, or even Saturn lineup. Then polish Saturn year after year but keep the costs downs so its seen a value with Euro engineering!
     
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  16. ma_54chevyman avatar 54chevyman Posted: 1/26/2009 6:40am PST

    Then the new Saturn and Buick Dealerships could also sell a small truck lineup badged as Saturns built on a car platform. Take the Saturn dealerships and send em packing or as am option take on the new Saturn/Saturn Truck /Buick name! This mini truck could be the Australian creation (former Pontiac) with many variations which are more truck like in appearance! Then a mini van like vehicle from Opel for light commercial duty. Therefore completing the fuel efficient lineup!!!!
     
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  17. ma_TrelinDTR avatar TrelinDTR Posted: 2/16/2009 12:40pm PST

    Chrysler has been along much longer than Saturn, and deserves at least some respect. Saturn tried, but ultimately lost the battle to GM, and got devoured. Saturn, I thought, was coming along with the rebadged Opel's, giving the brand a European flavor in an American frame.

    I feel bad for the dealerships for all the struggling brands...especially for the ones whose future is still up-in-the-air.

    I do agree that there is a lot of duplicate branding happening in GM...
    The VUE is basically a Equinox
    The AURA is a Implala/Malibu
    Outlook is a Enclave/Acadia/Traverse
    Astra is a Cobalt
    Sky is a Solstice

    I think Saturn though would do a better job as a Niche brand than Pontiac. Whenever I think Pontiac, I think horrendous crash tests and cheap materials...At least Saturn makes me think quirky
     
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  18. ma_NoNameDenton avatar NoNameDenton Posted: 2/16/2009 3:14pm PST

    I will miss your quirkiness Saturn, I salute you
     
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  19. ma_adamk avatar adamk Posted: 2/19/2009 8:56pm PST

    "This is an exciting time at the Saturn Brand, and I have to confess, it feels a bit like it did back in the 1980s when the original Saturn project was being developed," Lajdziak wrote.

    Yes, Ms. Lajdziak, I suppose presiding over a hobbled brand brought to death's door by its corporate parent could provoke some form of excitement. However, it would take a herculean amount of PR spin to portray abject uncertainty (at best) and probable demise as positive in any way. That such an impending and likely prospect could remind you of the brand's launch stretches credulity.

    Saturn has a few decent cars now, but GM waited at least a decade too long to figure out that they could be sourced from Opel/Vauxhall. Pity.
     
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  20. ma_adamk avatar adamk Posted: 2/19/2009 8:56pm PST

    "This is an exciting time at the Saturn Brand, and I have to confess, it feels a bit like it did back in the 1980s when the original Saturn project was being developed," Lajdziak wrote.

    Yes, Ms. Lajdziak, I suppose presiding over a hobbled brand brought to death's door by its corporate parent could provoke some form of excitement. However, it would take a herculean amount of PR spin to portray abject uncertainty (at best) and probable demise as positive in any way. That such an impending and likely prospect could remind you of the brand's launch stretches credulity.

    Saturn has a few decent cars now, but GM waited at least a decade too long to figure out that they could be sourced from Opel/Vauxhall. Pity.
     
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  21. ma_Mike avatar Mike Posted: 2/20/2009 10:42am PST

    Trelin DTR, what are you talking about? Saturn is one of GM North America's most unique brands. The Aura is not an Impala or Malibu, it's an Opel/Vauxhall Vectra, and the Astra is an Opel/Vauxhall Astra, lightyears ahead of the Cobalt. The Astra once held the record for fastest hot hatch around the Nurburgring. And what's with the dissing of Pontiac? Just now they have their most exciting lineup in decades. Okay, the G5 is just a Cobalt and the G6 is irrelevant but the Solstice and G8 are excellent cars. Where else can you get a RWD sedan with over 400hp and does 0-60 in 4.7sec that actually looks good for under under $45 thousand?
     
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  22. sidraja avatar Siddarth Raja Posted: 2/20/2009 6:40pm PST

    GM made the mistake of allowing Saturn to become the "quirky" brand. Pretty much everything coming out of GM Europe is good quality and would be perfect as small cars in their US lineup. I think if oil prices had gone up to $200 GM may have tried to save Saturn.
     
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  23. ma_ILUVMYSATURN avatar ILUVMYSATURN Posted: 2/21/2009 10:07am PST

    I think if Gm really wanted to survive they needed to put more into Saturn from Opel in Europe. Opel has some amazing cars over there that would sell well here especialy with gas as it is. Some small cross overs, Mazda 5 like vehicles that can look good and haul people. I think they should have trimed models like all of GMC. the G5, all of Hummer, and stop making 5 different versions of the Outlook. I am on Saturn #2 (03 VUE) and they have been the best cars I have ever owned (and I've had Honda's and VW's) I am holding on to hope that Saturn lives in some way and I would love to see the look on GM's face if Saturn goes on it's own and does what GM couldn't do.

    As for the GM executives. THey can all get fired! Ford changed the executives a few years ago and look a them now. They cleaned house and now they are much better off than GM or Chrysler. First thing on the adgenda. Change the head guys. Then we can expect GM to live
     
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  24. ma_ILUVMYSATURN avatar ILUVMYSATURN Posted: 2/21/2009 10:13am PST

    If any one is nervous about buying a Saturn right now or if you own one already. You are perfectly safe. Dealers have to be arround for a long time, even if Saturn dies, to service your car and it will be done to Saturn specifications. Better get them before they're gone because it is doubtful GM will ever make anything as good as the Saturn again. My first Saturn is still running and has 386,571km on it. I plan on buying Saturns as long as i can find them.
     
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  25. ma_ILUVMYSATURN avatar ILUVMYSATURN Posted: 2/21/2009 10:36am PST

    Check out the Saturn History site if you really wanna see why Saturn was the best thing for the auto industry. Talk about changing the status quo. They revolutionized the industry. Some of the inovations and methods they used were amazing. I hope they can used that to survive and prosper in the future!
     
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  26. ma_NoNameDenton avatar NoNameDenton Posted: 3/6/2009 1:43pm PST

    Check out the Saturn History site if you really wanna see why Saturn was the best thing for the auto industry. Talk about changing the status quo. They revolutionized the industry. Some of the inovations and methods they used were amazing. I hope they can used that to survive and prosper in the future!

    You mean a brand that has not been profitable for 20 years?
     
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  27. ma_Oceanair09 avatar Oceanair09 Posted: 3/13/2009 7:36am PDT

    GM does have the talent to produce the finest cars in the industry. However, management does not have the balls. They consistently produce cost-cutting "alternatives" to several niche or innovative ideas.

    "The VUE is basically a Equinox
    The AURA is a Implala/Malibu
    Outlook is a Enclave/Acadia/Traverse
    Astra is a Cobalt
    Sky is a Solstice"

    The Aura is not an Impala. Impala is on the W-Body. Aura is on the Epsilon like the Malibu. The Equinox is on a stretched version of the Theta platform, which has not been updated since 2005. Theta 1.5 which underpins the Antara/VUE was updated for 2008.
     
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  28. ma_RCharles avatar RCharles Posted: 3/20/2009 5:39am PDT

    GM deserves whatever they get in this economy. They have been beyond arrogant, ignoring both quality and customer satisfaction for years.

    I stopped buying ANY GM products after buying a Chevy Vega in which GM refused to fix a transmission problem. I've bought mostly foreign cars since the 70's and now have a Lexus SUV and a Miata.

    A friend bought a Saturn and had the engine disintegrate at 78K miles due to a KNOWN factory defect. Saturn did some routine maintenance but never asked her to bring the car in to correct the engine problem. Saturn then refused to cover the damage caused by the defect because she had not ALWAYS gone to the dealer for routine maintenance. She now owns a Toyota.

    Bye, bye, GM

    RCharles
     
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  29. ma_Countach avatar Countach Posted: 5/7/2009 7:13am PDT

    Too bad they didn't sell this car to Asia. They would probably still be profitable!
     
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  30. ma_Rcrazy avatar Rcrazy Posted: 5/18/2009 6:24am PDT

    If American companies would put a car out there that is safe, fuel efficient, affordable and reliant and then back them with a warranty the company will stand behind people will buy them. Of course, this is a difficult thing when you have to pay workers 80.00 an hour to watch robots work and millions a year so company execs can buy islands.
     
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  31. By  maus Posted: 1/6/2010 10:59pm PST

    The cars - at least the early ones - were lousy and not competitive with Japanese equivalents. Opals, on the other hand, are really nice cars and really repair-prone. Good luck with that.
     
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