GM Executive: 'Moving Quickly' To Close Saturn After Deal Collapse
02 October 2009 - 2:33AM
Dow Jones News
General Motors Co. will "move quickly" to wind down the Saturn
brand after a deal to sell the line unexpectedly fell through, the
company's treasurer said Thursday.
The auto maker is eager to shed the four money-losing brands -
Saturn, Pontiac, Hummer and Saab - slated to go as part of GM's
government-run restructuring.
GM had hoped to sell Saturn to Penske Automotive Group Inc.
(PAG), but the deal collapsed on Wednesday after Penske failed to
secure an agreement to have France's Renault SA (RNO.FR) supply
autos for dealers once GM stops building Saturns in about two
years.
Without a buyer for the brand, the Saturn dealer network will
cease to exist by October 2010, but many dealerships could close
before than.
"We will move quickly to wind down Saturn so we can get on with
the four core brand strategy," GM Treasurer Walter Borst said,
speaking at an analysts' conference in Scottsdale, Ariz.
The auto maker is "redoubling" efforts to finalize a deal to
sell Hummer to China's Sichuan Tengzhong Heavy Industrial Machinery
Co., and anticipates the sale will close by the end of the year,
Borst said.
The Hummer deal hinges mainly on Tengzhong's ability to gain
Chinese regulatory approval for the sale.
Meantime, GM is awaiting word from the Swedish government on
whether it will provide funding to sell Saab Automobile AB to
sportscar manufacturer Koenigsegg Group AB.
Koenigsegg said when it finalized the takeover that it needed to
find around another 3 billion Swedish kronor ($413 million) in
financing to satisfy its business plan, and called on the Swedish
government to play a key role in raising this money.
Borst said GM is hopeful that deal also can close by the end of
the year.
Pontiac, like Saturn, will wind down by next fall.
-By Sharon Terlep; 248-204-5532; sharon.terlep@dowjones.com