GM ends deal, Saturn's end certain

Penske Automotive Group has terminated the deal after being unable to find a manufacturer for Saturn. The Automotive giant was in talks with a foreign carmaker to make cars after GM gives up its production in 2011. But the company has failed to secure an agreement with the unidentified auto-manufacturer.

“As a result of PAG’s decision, we will be winding down the Saturn brand and dealership network, in accordance with the wind-down agreements that Saturn dealers recently signed with GM,” GM chief executive Fritz Henderson said in a written statement. “Pursuant to the terms of those agreements, the wind down process will be determined and communicated shortly.”

Risk to jobs and dealers
The tentative agreement, reached in June, was a move towards restructuring the struggling GM -- which was operating under bankruptcy protection -- saving jobs, and keeping Saturn’s dealers in business. But the stunning turn of events puts at risk some 13,000 jobs and will adversely impact its 350 dealers.

"This is very disappointing news and comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality," Henderson stated.

"I find this hard to believe," said Carl Galeana, owner of two Saturn dealerships in suburban Detroit. "Everyone's been saying we're right at the goal line."

Saturn’s sad end
The chances for the talks to reopen or another manufacturer stepping in to takeover Saturn are remote. GM will wind up the unit by October 2010.

The shutdown will bring to end the once top seller GM division.

Saturn, launched in 1990 with a tagline "a different kind of car company", managed to win over customers due to its no haggle, no hassle car pricing policy and offered stiff competition to its Japanese counterparts.

But soon it was seen battling for survival with GM’s other units and eventually in the late 90s the brand languished.

End users voice discontent online
Besides the dealers, stakeholders and the unit’s employees, the end users are not too happy either. Quite a few of them declared their distaste online about Saturn shutdown.

A reader named Hugh posted his view on businessweek.com, “gm had been trying to gut Saturn for years. i have bought 8 Saturns mostly in the early 90's and 2 in 07. they were all great cars. but what can you expect from gm, they are losers.”

Another reader Ted Murphy on CNNMoney.com stated, “GM - with all of its brands - no longer understood how to market them. Instead, they competed with each other rather than to different audiences. I wish they could keep Saturn and market it with the GMC and Buick brands. But, it would only compete with Chevy. Saturn was a good brand but GM did not deliver with timely products. I feel sorry for Saturn dealers and customers.”

The sorry state of affairs will continue on though till October 2010 when GM officially shuts shutters on Saturn. Till then, there is a fat chance that Saturn will find another manufacturer.