Saturn's Hip Little Hatchback

From BusinessWeek.com: As gasoline prices continue to soar, U.S. drivers will probably start buying more small, European-style cars. The new Saturn is virtually identical to the Continental European Opel Astra, the British Vauxhall Astra, and the Australian Holden Astra. That's a good thing when it comes to handling. This car's driving dynamics are a huge improvement over those of the Saturn Ion, the unlovable staple of rental car fleets that the Astra is replacing. Under the hood is a 1.8-liter, 140-hp, inline four-cylinder engine coupled with a five-speed manual or four-speed automatic transmission. The Astra comes as either a two-door or four-door hatchback, and, particularly in the two-door style I test-drove, the steering is tight, the suspension sporty, and the fuel economy excellent.

The Astra is far better designed and built than GM's previous small cars. It's also reasonably priced, especially considering how much standard equipment it packs. There are two trim levels: the XE, which starts at $15,995, and the XR, which starts at $17,545. Even the base model comes loaded with gear you don't necessarily expect to get on a low-priced GM vehicle: full-power accessories, rain-sensitive wipers, six airbags (including head-protecting, side-curtain bags), a tilting and telescoping steering wheel, cruise control, and a trip computer. Moving up to the XR gets you alloy wheels, air conditioning, and a better sound system.

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GM President & CEO Fritz Henderson: Penske Discussions Terminated, Brand to be Shutdown

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General Motors Media Statement Attributed To President & CEO Fritz Henderson: Today we learned that Penske Automotive Group (PAG) has decided to terminate discussions with General Motors to acquire Saturn. This is very disappointing news and comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality. PAG's announcement explained that their decision was not based on interactions with GM or Saturn retailers.