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GM to Sell Saturn Brand to Racing's Penske, Hummer Brand to Chinese Firm

06/05/2009
General Motors Corporation (GM) has reached a tentative deal to sell its Saturn brand of automobiles to Penske Automotive Group, according to a Penske Group statement. If the deal is completed, it will save more than 350 dealerships and approximately 13,000 jobs throughout the United States. Under the terms of the agreement, the Penske Group will obtain the rights to the brand and other Saturn assets, and will keep Saturn as an independent company while contracting with GM for continued production of the Saturn Aura, Vue, and Outlook vehicles. "Saturn has a passionate customer base and outstanding dealer network," says Roger Penske, chair of the Penske Group. "For nearly 20 years, Saturn has focused on treating the customer right. We share that philosophy and want to build on those strengths." Penske is a former race-car driver who currently owns both NASCAR and IndyCar racing teams; the Penske Automotive Group owns more than 300 franchised automotive dealerships throughout the United States, the United Kingdom, and Germany. Penske says the deal is expected to close during the third quarter of this year. Earlier this week, GM announced a tentative agreement to sell the Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery Company, a China-based engineering company that produces heavy machinery equipment. A GM statement says that deal is subject to approval by Chinese government regulators and is expected to close sometime later in the year.

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