Penske: Saturns May One Day Be Sold Beyond US, Canada
30 July 2009 - 6:10AM
Dow Jones News
General Motors Co.'s Saturn escaped death in the auto maker's
just-finished bankruptcy. Now the troubled brand, with auto magnate
Roger Penske in charge, could go global.
Penske, working to close a deal with GM to buy Saturn, said
Wednesday he could eventually consider selling the vehicles outside
the U.S. and Canada.
His Penske Automotive Group Inc. (PAG), which agreed in June to
buy Saturn's brands, service and parts and distribution operations,
owns retailers in the U.K. and Germany.
"Maybe if we're successful in completing this transaction, we
could use the Saturn brand somewhere else in the world," Penske
said, speaking to investors following the company's release of
second quarter earnings.
If Saturn were to expand outside North America, Penske would
wholly own the brand globally.
For now, he said, Penske is strictly focused on sales in the
U.S. and, possibly, in Canada.
A possible global expansion of Saturn would be the latest
blurring of global boundaries in a shakeup of the world's auto
industry.
Penske said he aims to take over General Motors Co.'s Saturn by
the end of September, as initially planned, though some issues
remain. Namely, Penske still must ink new contracts with around 350
existing GM dealers to sell Saturn vehicles under new terms.
Penske is not buying Saturn dealerships or any manufacturing
operations.
"We're past midfield with GM," he said. "There are always issues
you have to deal with."
Penske initially will buy GM vehicles that are already part of
the Saturn lineup but eventually will branch out to purchase
vehicles from Renault and its Korea-based Samsung Motors unit.
Other auto makers could become suppliers, too.
Penske said Wednesday he has yet to reach a deal with a
manufacturer to take over after GM stops producing.
-By Sharon Terlep, 248-204-5532; sharon.terlep@dowjones.com.