The future of Saturn is anything but clear but as the weeks roll on decision time for General Motors continues to contract. The ailing Detroit carmaker confirmed in its most recent viability plan that it would only supply product to Saturn through the 2012 model year, and earlier this month in a letter to dealers it revealed that it had hired former Morgan Stanley auto analyst Steve Girsky to help advise on several possible options for the brand.
The most likely options for Saturn right now would be a brand spinoff or simply an outright sale to another manufacturer or investment group. One of Saturn’s major drawbacks is that it does not build any of its own models, so any outcome would see Saturn have to rely on other companies to supply it with vehicles.
In the latest twist of the Saturn saga, GM spokesman Steve Janisse confirmed to Automotive News that there a “few” parties that have expressed interest in the brand. "There is interest from investors in doing a spinoff, and there are other entities interested in just buying it," he revealed. Janisse also said GM wants to have a clear proposal for Saturn dealers by the middle of April.
The outlook isn’t good, even if the company is spun off or sold. According to Autodata vehicle statistics, Saturn’s sales figures in January dropped 59.8% on the same period a year ago and the brand’s share has dropped to below 1% - less than Buick and Pontiac. In the past 20 years, Saturn has been profitable for only one year.
On the flipside, dumping Saturn and cutting its losses would put GM out of pocket by a significant amount of cash – something it currently does not have. To dump the brand, GM would be forced, by law, to buy out the 211 Saturn dealers across the country at a cost of nearly $1 billion. Saturn may not have those resources on its own, either, leaving all of those dealers, buyers and employees out in the cold.
In the latest twist of the Saturn saga, GM spokesman Steve Janisse confirmed to Automotive News that there a “few” parties that have expressed interest in the brand. "There is interest from investors in doing a spinoff, and there are other entities interested in just buying it," he revealed. Janisse also said GM wants to have a clear proposal for Saturn dealers by the middle of April.
The outlook isn’t good, even if the company is spun off or sold. According to Autodata vehicle statistics, Saturn’s sales figures in January dropped 59.8% on the same period a year ago and the brand’s share has dropped to below 1% - less than Buick and Pontiac. In the past 20 years, Saturn has been profitable for only one year.
On the flipside, dumping Saturn and cutting its losses would put GM out of pocket by a significant amount of cash – something it currently does not have. To dump the brand, GM would be forced, by law, to buy out the 211 Saturn dealers across the country at a cost of nearly $1 billion. Saturn may not have those resources on its own, either, leaving all of those dealers, buyers and employees out in the cold.
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