Friday June 5, 03:59 PM
Penske to acquire GM's Saturn brand
WASHINGTON (AFP) - The Penske Automotive Group is to acquire ailing General Motors (NYSE: GM - news) ' Saturn brand in a deal saving some 350 dealerships and 13,000 jobs at Saturn and its retailers in the United States, GM said Friday.
Penske, a big auto dealership operator, would obtain the rights to the brand and other Saturn assets, said GM, which filed for bankruptcy protection this week as it struggles to overcome enormous debt and slumping sales.
GM said a memorandum of understanding calls for the automaker to continue to produce Saturn cars on a contract basis, including the Saturn Aura sedan, and the Vue and Outlook sport utility vehicles.
If completed, it said, "the deal would save more than 350 dealerships and 13,000 jobs at Saturn and its retailers in the United States, and would preserve the customer-focused Saturn brand."
"This is the combination of two iconic teams: Saturn and Penske," said Saturn general manager Jill Lajdziak. "GM had the vision to create Saturn and has the desire to see it succeed in the future."
Penske chairman Roger Penske, an ex-race car driver, said Saturn had 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," he added
Saturn began selling cars in 1990 and has sold more than four million vehicles.
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