Brand Spin-Offs Could See Boosted New Car Sales

Kelly Johnson from the Sacramento Business Journal: New corporate owners could boost Saturn, Hummer, and Saab sales, and help ease car-shoppers' concerns about future of the still-struggling brands. Saturn's pending purchase by Penske has support from dealers and consumers. They know of company chairman Roger Penske's success as a racecar driver and racing team owner, in truck rentals and with auto retailing. "Penske has a track record," said George Hoffer, a Virginia Commonwealth University economics professor who has written extensively on the auto industry. Dealers think there is a "very large chance of success under the new ownership," said Paul Taylor, chief economist with the National Automobile Dealers Association in Washington, DC. Saturn's strengths are that it has a lean dealer network, the most modern locations and the best product line of the GM brands that are being spun off, Hoffer said. The sale to Penske is expected to close in the third quarter, pending federal approval.

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Developing Story: Penske Backs Out of Deal, General Motors to Close Saturn


With negotiations expected to finalize tomorrow, Roger Penske shockingly announced to GM and the public today that he is backing out of the deal after failing to secure a manufacturer for the brand. For a couple of months now, Penske has been courting Renault-Nissan in an effort to outsource a model for the Saturn brand.