Friday, June 5, 2009
Roger Penske says his plans to buy Saturn from GM will produce something the Detroit automaker was never able to wring out of the brand -- a profit.
The former race car driver's Penske Automotive Group has entered a tentative deal with GM to buy up Saturn's 350 dealerships and says his distribution model for the brand should be profitable from day one.
He says he expects to offer all the dealers new franchise agreements and will retain all 13,000 employees for now. Both companies say initially, GM will continue to produce Saturn cars on a contract basis. But, Penske says he's in talks with manufacturers aroung the world about building the cars.
Penske says he expects the deal to close next quarter. Neither side has commented on the selling price.
Despite a cult-like following, the brand never made money for GM.