Saturn may leave General Motors’ orbit

As General Motors works to aggressively realign its business, the fate of the Saturn division, among others, has been in question. With the “2009-2014 Restructuring Plan” delivered Tuesday to Congress, General Motors presented insight into the future for Saturn:

“Saturn will remain in operation through the end of the planned lifecycle for all Saturn products (2010-2011). In the interim, should Saturn retailers as a group or other investors present a plan that would allow a spin off or sale of Saturn Distribution Corporation (SDC), GM would be open to any such possibility. If a spin off or sale does not occur, it is GM’s intention to phase out the Saturn brand at the end of the current product lifecycle.”

GM leaves the door open for a variety of situations, from starving the brand of products to selling the business outright.

In an official Saturn blog, General Manager Jill Lajdziak yesterday wrote:

“The Saturn Distribution Corporation already exists as an indirect subsidiary of GM. It’s the entity with which our retailers currently have their franchise agreement. An independent Saturn would still have its great retailers, and it would continue to source current products from GM through 2011 and if successful, SDC at that point would source products from other manufacturers.”

An independent Saturn sourcing its vehicles from other manufacturers would indeed create a “different kind of car company.”

Saturn has always been defined by its no-haggle pricing and positive dealer experiences, not its often-lackluster products. There is the potential for real showroom innovation, pulling together the most “Saturn” products from a variety of automakers, large and small, while retaining the distinct Saturn hallmarks.

Could the future of Saturn be much like Sears’ Kenmore brand, private labeling products sourced from multiple companies? It is a strategy that has long served Sears, and its customers, well. Given the challenges the auto industry is facing, there could be real benefits to a company that operated more as a reseller, without the burdens of manufacturing. Likewise, it could open up the potential for small companies or foreign transplants to rise with the access to a dealer network.

One thing is for sure, the auto industry five years from now will look a lot different.

—Jeff Bartlett

Update 2/19/09: Saturn has reportedly notified its 1.5 million owners that it will need to source products from other manufacturers after the 2012 model year and that it would be able to service and warranty current models.

More blogs about Saturn:
Brand Survival - The fates of Saturn, Saab, and Volvo
Lifting the hood on the Saturn Astra

Comments

[Michael Belo]

While the early Saturns were mediocre cars, it has some good cars now, such as the Aura and Astra. It also has access to GM's Opel brand, and the Opel Insignia, the European Car of the Year, was rumored to be the next Aura. So there is a lot of reason to cheer on Saturn. I really want to buy an American car to support our economy, but I like high-performance, technically interesting cars with turbos, manual transmissions, etc. The Insignia has a couple of turbo/6 speed variants in Europe. So let's keep those neat cars coming, Saturn!

[Information Desk]

Former race car driver turned automotive dealership magnate Roger Penske plans to buy Saturn from General Motors. This article explains how Penske plans to turn it into a new kind of car company. http://pfx.me/hv

[Angelina Waters]

Saturn did not hold on. Penske could not find anyone to manufacture the vehnicals. GM is shuting down production plants, they could not lease any of them to Saturn until they are in a position to buy and control thier production. They can sign a rental agreement like couples who are divorcing. Make a lease for one hundred years or when Saturn becomes profitiable to subtain itself. I am sure there are several plants to suit Saturn' needs and employ some american workers.