Saturn Deal Didn’t Meet Renault’s Return Requirement

Sharon Terlep from the Dow Jones Newswires: Auto magnate Roger Penske believed he was taking over General Motors' Saturn brand until the very last moments, when France's Renault shocked both Penske and GM by backing out of an agreement to provide vehicles. Penske addressed the failed deal Friday as he announced Penske Automotive Group's quarterly financial results. The company also disclosed it took a $1.9 million third-quarter charge on the Saturn deal. "We believed we were making substantial progress toward an agreement," Penske said during a conference call with investors. At the last minute, he said, Renault decided the Saturn venture "did not meet their return requirement." Under their novel agreement, Penske would have taken over GM's network of Saturn dealers. The auto maker would have continued producing Saturn vehicles for about two years after which time Renault would take over production.

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Breaking News: GM to Focus on Core Brands, "Explore Alternatives" with Saturn

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General Motors presented a restructuring plan to Congress earlier this afternoon with hopes of receiving $12 billion in term loans that it believes will help ensure liquidity through the end of 2009. As part of the plan, General Motors revealed that it intends to focus on its "core brands" - Chevrolet, Cadillac, GMC, and Buick. Pontiac will become a "specialty" brand that sells niche vehicles. Saturn, Saab, and Hummer will be closed or sold.