Penske Breaks Off Talks with GM for Saturn, Brand to Go Away

Michelle Krebs from Edmunds Auto Observer: In a surprise move, Penske Automotive Group terminated discussions with General Motors to acquire Saturn due to its inability to secure agreements for the future supply of vehicles beyond what it had negotiated with GM. As a result, GM will wind down Saturn much as it is doing now with its Pontiac division. In a statement issued by the Penske Group late Wednesday, on the eve of the expected close of the deal, the auto retailing group cited "concerns directly related to the future supply of vehicles beyond the supply period it had negotiated with GM." Retailers who had signed franchise agreements for the new Penske-run Saturn group were as shocked as anyone. They were scheduled to attend meetings with company founder Roger Penske next week, after the deal was closed, to hear about plans for product and timing. Instead, they head through the media - not the Penske group, Saturn or GM - that the deal had fallen apart. Some are hoping something can be salvaged of the plan.

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Rumor Mill: Progress Being Made on Saturn Spin-Off, Sources Say We Will be "Excited"

Tags: hears that progress is being made in Saturn's attempt to spin itself off from General Motors. The customer-friendly brand is reportedly moving quickly to determine a viable, long-term business plan for the future - and to return to its roots as a "different kind of car company." While nothing official has been released by the company, word on the street is that the things are moving forward.