It’s Official: Saturn to Cease Operations in Canada

Earlier today Stew Low, a spokesman for General Motors, officially announced what had been expected for some time: Saturn will cease its operations in Canada on or before December 31, 2009. According to Low, the decision to shutdown operations was jointly made by General Motors and Penske officials after thoroughly analyzing the brand's Canadian business model.

Saturns are distributed and sold differently in Canada than in the United States. While stores are standalone entities in the U.S., Canadian franchises have always been paired with two other GM-affiliated manufacturers: Isuzu and Saab. Isuzu stopped selling vehicles in Canada earlier this decade; Saab just recently announced its plans to pull of the country as well. Penske likely determined it would be too risky and expensive to operate in Canada on its own.

Automotive News reports that GM informed the brand's 46 Canadian retailers of its decision last week. One store already posted a sign informing customers of the news:

Public notice: General Motors has advised us this week that there will no longer be a Saturn division in Canada. Proposed final closing date as announced by GM will be December 31 or earlier for dealers.

Saturn car owners in Canada will still be able to get their cars serviced after their local stores close. Saturn's customer service, parts, and warranty operations will transfer to other General Motor dealerships.

Source: Automotive News

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