Penske Automotive Group, Inc., an international automotive retailer, recently announced that it has signed a Memorandum of Understanding (MOU) with General Motors regarding the Saturn brand. If the transaction is completed under the terms of the MOU, Penske Automotive Group would obtain the rights to the Saturn brand, acquire certain assets including the Saturn parts inventory, and have the right to distribute vehicles and parts through the Saturn Dealership network. General Motors would continue to provide Saturn Aura, Vue and Outlook vehicles, on a contract basis, for an interim period.
“We have agreed upon a framework that we believe will build momentum for the Saturn brand,” said Penske Automotive Group chairman Roger Penske. “Saturn has a passionate customer base and outstanding dealer network. For nearly 20 years Saturn has focused on treating the customer right. We share that philosophy, and we want to build on those strengths.”
Saturn began selling cars in 1990 and has sold more than 4 million vehicles. More than 80 per cent of those vehicles are still in operation, according to data from R.L. Polk.
Commenting on the proposed deal, Saturn general manager Jill Lajdziak said, “This is the combination of two iconic teams: Saturn and Penske. GM had the vision to create Saturn and has the desire to see it succeed in the future.”
The closing of the transaction is expected to occur during the third quarter of 2009 and is subject to customary conditions, including the completion of due diligence, regulatory and other approvals. Further details of the transaction are not being released at this time.
Penske Automotive Group, Inc., (www.penskeautomotive.com) headquartered in Bloomfield Hills, Michigan, operates 310 retail automotive franchises, representing 40 different brands and 25 collision repair centres.