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GM Plans to Sell Saturn Brand to Penske Automotive Group |
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Monday, 11 May 2009 |
General Motor has finally admitted defeat as they have made plans to declare bankruptcy to the multi-billion dollars business. With the inability to formulate an amicable reformation strategy with its investors, the company would be filing Chapter 11 to protect them from ballooning debt problems.
On a brighter side, GM would be forging ahead with their plans to sell their Saturn brand to Penske Automotive Group. As the name implies, Penske Automotive Group is owned by former race car driver, Robert Penske. If the deal succeeds, Penske Automotive Group would gain authority over Saturn’s 350 dealerships. On the other hand, the move would also help retain all 13,000 Saturn employees.
Robert Penske commented that their main intention to acquire the Saturn brand was that his company wanted something that appeals to the younger generation drivers. This will also give them the ability to compete with Japanese imports.
However, both parties did not disclose any information on their finalized acquisition plans.
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