GM to sell Saturn to Penske

 

GM to sell Saturn to Penske

Penske Automotive Group, owned by racecar legend Roger Penske, will buy GM’s castoff brand.

By David Goldman, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) — Bankrupt automaker General Motors Corp. will sell its Saturn unit to car dealership operator Penske Automotive Group, a person familiar with the situation told CNNMoney.

Penske (PAG, Fortune 500) is owned by former race car driver Roger Penske, who owns NASCAR and IndyCar racing teams. The deal would give Penske the rights to the 19-year old brand, but GM would continue production of the Saturn Aura, Vue and Outlook.

The deal would save more than 13,000 jobs at Saturn and its nearly 400 dealers nationwide, the source said. The deal is expected to be completed by October.

The sale is part of GM’s strategy to shed its four "non-core" U.S. brands — Saturn, Hummer, Pontiac and Saab — as it restructures the company.

On Tuesday, GM (GMGMQ) announced a deal to sell its Hummer line to China’s Sichuan Tengzhong Heavy Industrial Machinery Company Ltd.

The Saturn brand has been highly rated in customer satisfaction surveys for its no-haggle policy. GM has sold more than 4 million Saturns since it created the line in 1990.

CNNMoney.com senior writer Peter Valdes-Dapena contributed to this report. To top of page

 
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