GM to investors: Reach for the Sky (and Solstice)

With the increased likelihood of bankruptcy looming, cash-strapped General Motors would be open to selling off part of its manufacturing capacity to another carmaker, and even let buyers cherry pick some individual car lines, according to President and CEO Fritz Henderson.

Speaking in response to questions at a news conference this morning, Henderson said GM would entertain offers on Saturn manufacturing plants and models in addition to the dealer and distribution network.

Asked specifically about the Wilmington, Delaware plant that produces the Saturn Sky and Pontiac Solstice and coupes, Henderson said the carmaker would be “very open to this and would encourage it.”

He quickly added the company has had no offers for the plant, or any other manufacturing capacity. GM has reported a number of parties have expressed interest in purchasing the Saturn distribution channel.

According to GM data, Saturn sold just 871 Sky roadsters in the first four months of 2009. Pontiac had a stronger showing, selling 1,206 Solstices during the same time, though that number total also includes the coupe. While purchasing the assembly line and cars doesn’t ensure large sales volume, it could enable a small company to enter the sports car market and develop their own models.

Before making GM an offer, do take note that neither the Sky nor Solstice are Consumer Reports Recommended models. Both proved unimpressive against competing models in our testing—though the turbo version is better—and Predicted Reliability is much worse than average. 

That said, it could be the chance of a lifetime to acquire the ownership rights, manufacturing assets, and factory talent, and turn them into the car of your dreams. Assuming deep pockets, what would you do with the Wilmington plant?

—Jim Travers

Comments

[Chris Engel]

This whole issue with bankruptcy raises a question: what happens to those people who have an extended warranty on their vehicle(s) - do those extended warranties go down the tubes when bankruptcy is declared?