GM Says 16 Parties Expressed Interest In Saturn Brand
June 02 2009 - 10:53AM
Dow Jones News
Saturn brand vehicles currently produced by General Motors Corp.
(GM) could stick around after the auto maker sells the brand, the
company said Tuesday.
GM, which filed for bankruptcy protection Monday, is working to
shed Saturn as part of sweeping plans to shrink the company and
offload money-losing parts of the business.
In a presentation to analysts a day after its bankruptcy filing,
GM said 16 parties have expressed interest in Saturn.
GM said it is in talks with potential bidders about continuing
the Saturn product line after the sale.
Bidders have included auto retail giant Penske Automotive Group
Inc. (PAG) and private equity firm Black Oak Partners LLC.
Saturn has lost money since GM launched the brand in 1984 -
first marketed as "a different kind of car company" - as a way to
fight off competition from foreign competitors, such as Toyota
Motor Co. (TM).
Saturn generated much enthusiasm and a reputation for top-notch
customer services, but never delivered the competitive edge GM
hoped for.
The company had hoped to garner interest at least in Saturn's
retail network. Saturn dealerships often are newer and more modern
than the average GM-brand dealership, and they tend to be stationed
in more desirable locales.
GM also is moving to shed its Saab, Pontiac and Hummer brands.
On Monday, the company announced the tentative sale of the Hummer
brand to an unnamed buyer. Chief Financial Officer Ray Young told
analysts Tuesday that GM continues to negotiate with three parties
about buying Saab and will move forward with plans to "wind down"
Pontiac.
-By Sharon Terlep, Dow Jones Newswires;
sharon.terlep@dowjones.com