October 01, 2009

So Long Saturn, Nice To Know Ya

General Motors has been trying to sell off Saturn, they had a buyer and the deal was suppose to close yesterday.

Instead of closing the buyer backed out.

On Tuesday, General Motors Co. thought it had a deal to sell its storied brand Saturn. But Wednesday afternoon, a day before the deal was to be announced, the Detroit automaker was blindsided by the news that businessman Roger Penske's deal to acquire Saturn had collapsed.

Penske was going to buy Saturn and then have Renault-Nissan actually make the vehicles for him after the sale was complete but Renault-Nissan backed out.

Penske’s plans for Saturn depended on securing another manufacturer to build future vehicles — a critical part of deal that fell apart when the board of directors for that unidentified automaker rejected the arrangement.

That manufacturer was Renault-Nissan, a person close to the talks told the Free Press.

This is a huge blow for General Motors, 350 dealerships and thousands of employees will lose their jobs.

But the ironic part of all this?

GM was making Saturns at several of it's plants, including the original Saturn plant in Spring Hill, TN.

All but one plant that was making Saturns will stay open as they all make GM vehicles also, the only plant that will be closing is the Spring Hill, TN plant.

Looks like Senator Bob Corker is getting his karmic payback for being such as asshole to the Auto Makers in January.

Posted by Quality Weenie at October 1, 2009 09:34 AM

If people weren't loosing their jobs I'd have to do a 'shaft Corker' dance...

Posted by: Pam at October 1, 2009 04:53 PM