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GM signs memorandum of understanding to sell Saturn brand to Penske
By Caroline Salls
Pittsburgh, June 5 - General Motors Corp. has signed a memorandum of understanding to sell the Saturn brand to Penske Automotive Group, Inc., according to a news release.
Specifically under the memorandum of understanding, Penske Automotive Group would obtain the rights to the Saturn brand, acquire assets including the Saturn parts inventory and have the right to distribute vehicles and parts through the Saturn Dealership network.
According to the release, GM would continue to provide Saturn Aura, Vue and Outlook vehicles, on a contract basis, for an interim period.
"We have agreed upon a framework that we believe will build momentum for the Saturn brand," Penske Automotive Group chairman Roger Penske said in the release.
"Saturn has a passionate customer base and outstanding dealer network. For nearly 20 years Saturn has focused on treating the customer right.
"We share that philosophy, and we want to build on those strengths."
Commenting on the proposed deal, Saturn general manager Jill Lajdziak said in the release, "This is the combination of two iconic teams: Saturn and Penske.
"GM had the vision to create Saturn and has the desire to see it succeed in the future."
Further details of the transaction are not being released at this time, according to the release.
The sale is expected to close during the third quarter of 2009, subject to customary conditions, including the completion of due diligence, regulatory approvals and other approvals.
GM, a Detroit-based automaker, filed for bankruptcy on June 1 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 09-50026.
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