GM sells Saturn to Penske

[02mingryGT]

http://www.latimes.com/business/la-fi-gm-saturn6-2009jun06,0,1908593.story

[sean]

Great so I will be using a saturn wagon to move in???? Or I guess a vue for a 3 bedroom job. No wonder they were the best price.

[cstreu1026]

Or maybe they will build the Sky Redline with a detuned indy car engine.

[Wolvrin704]

Or maybe they'll end up being a middle man for Korean, Chinese or Indian cars.

[k062693w]

Or maybe things will not change and they will continue to build the same vehicles ???

Of course I could look at in a negative light too... But Why ???

[cstreu1026]

I think it will be a positive thing for Saturn. The dealers get a new lease on life and hopefully it works out to be profitable for all involved. I don't think Roger Penske is in the charity business so he must think he can make a buck.

[k062693w]

I think it will be a positive thing for Saturn. The dealers get a new lease on life and hopefully it works out to be profitable for all involved. I don't think Roger Penske is in the charity business so he must think he can make a buck.

I agree Cam !!! :bigthumb

I just have a feeling this will turn into a Political Discussion... Instead of "TRYING" to look at it as a positive thing ... Just my $.02 :screwy: :lol:

[02mingryGT]

Or maybe things will not change and they will continue to build the same vehicles ???

Of course I could look at in a negative light too... But Why ???

I agree. I'm sure everyone who works for Saturn is happy as hell. That and Obama can claim their jobs as "saved".....:lol:

[shep]

eh i don't think it will turn out as well as some think. With all the "out sourcing" i think they will turn crap cars, especially if they are going to be going between different companies. Who knows, it could turn out for the best....makes me a little mad that the fine US wont be benefiting from it due to the outsourcing probably.

[02mingryGT]

eh i don't think it will turn out as well as some think. With all the "out sourcing" i think they will turn crap cars, especially if they are going to be going between different companies. Who knows, it could turn out for the best....makes me a little mad that the fine US wont be benefiting from it due to the outsourcing probably.

I don't understand your post. Are you saying Penske has said he will outsource the build of these vehicles or are you generalizing Saturn in with other's that do outsource? I am not familar with the location of Saturn's plants but I do know there is one in Tenneessee.

[MADMOD]

Or maybe they'll end up being a middle man for Korean, Chinese or Indian cars.



The owner of the Saturn dealership I work at said that he suspects that the cars will come out of S. Korea made by Motorola. Just with Saturn badging. This may be just rumor though.

[02mingryGT]

The owner of the Saturn dealership I work at said that he suspects that the cars will come out of S. Korea made by Motorola. Just with Saturn badging. This may be just rumor though.

Now that would be f*cked up. Motorola? Sounds like a joke. Next thing you know Coke will make camera's.

[BigBadStang]

From the AP (New York) 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 around 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.

[02mingryGT]

Thanks :bigthumb I guess they're going down the toilet too then.

[BigBadStang]

Thanks :bigthumb I guess they're going down the toilet too then.

I can't wait to see how the Chinese will make Hummers even more hideous looking than they are now. In a few years the "saved" jobs at Hummer will be lost when they start building them in China. I hope the military stops buying these things when the ownership changes to a Chinese entity, but I won't hold my breath.:rolleyes:

[mustang8998]

I can't wait to see how the Chinese will make Hummers even more hideous looking than they are now. In a few years the "saved" jobs at Hummer will be lost when they start building them in China. I hope the military stops buying these things when the ownership changes to a Chinese entity, but I won't hold my breath.:rolleyes:

If you ever thought, for a moment, that the civilian Hummers were the same as the military's, well :doh:

http://www.google.com/hostednews/ap/article/ALeqM5hBBs0ut_sgKCsPFNeUAWseWgy3PAD98K3OLO1

[BigBadStang]

If you ever thought, for a moment, that the civilian Hummers were the same as the military's, well :doh:

http://www.google.com/hostednews/ap/article/ALeqM5hBBs0ut_sgKCsPFNeUAWseWgy3PAD98K3OLO1

I knew they were not the same. Spec, and build wise they are night and day, but I assumed they were both tied in somehow to GM. I was wrong. Thanks for pointing it out.

[cstreu1026]

Thanks :bigthumb I guess they're going down the toilet too then.

Why do you assume they will be going down the toilet? I think by not being obligated to build then in any one factory or being tied to a range of corporate platforms things will actually improve in the long term. With the exception of the products I haven't seen that are being offered by the Chinese and Indian companies most manufacturers today build quality products. Besides, I don't think Roger Penske will sign off on any pile of crap.

[BigBadStang]

...Besides, I don't think Roger Penske will sign off on any pile of crap.

Do you remember Penske Auto Centers?
:lol:

It had his name all over it, and it was a pile of crap from start to finish.

[cstreu1026]

Penske and Kmart Dispute Announced Auto Centers Closings
Penske Auto Centers, LLC (PAC) announced that it has discontinued operations of all of its automotive service centers. The company, which purchased the automotive service business from Kmart Corporation in November 1995, had operated at 563 Kmart locations in 44 states.

Jim Wheat, President and CEO of PAC said, "Our team is focused on assuring an orderly transition for all of our constituents including customers and employees. Importantly, wherever possible we will try to provide our employees with opportunities for positions within the Penske family of companies." Mr. Wheat will continue in his current position as PAC operations wind down.

Kmart Corporation said that the United States Bankruptcy Court for the Northern District of Illinois has issued a temporary restraining order against Penske Auto Centers, Inc., and Penske Auto Centers, LLC requiring them to continue operating auto service centers at more than 550 Kmart stores across the United States.

The order, signed by Chief Judge Susan Pierson Sonderby, enjoins Penske from taking any action to close or liquidate the Penske Auto Centers owned and operated by Penske Auto Centers, LLC, including any action to refrain from opening or continuing to operate the auto centers for business as usual. Penske informed Kmart on April 5, 2002, that it intended to immediately shut down the operations of the auto centers as of the start of business on Saturday, April 6, 2002.

Kmart had been in discussions with Penske for several weeks regarding a mutually acceptable plan for the future of the auto centers.

Senior officials of PAC responded that the Kmart press release regarding the court order was misleading. Richard Peters stated, "After reviewing the release from Kmart this afternoon, I feel obliged for the benefit of our employees and customers to provide background on some of the events surrounding PAC's decision to discontinue operations. Over the past five months, PAC management has conducted numerous meetings with senior Kmart officials to discuss strategies to provide support to PAC during Kmart's restructuring and subsequent Chapter 11 bankruptcy filing. During that period, Penske Corporation provided over $40 million to support the viability of PAC."

On March 27, 2002, Peters and Penske met with Kmart's Chief Operating Officer, Julian Day and Chief Restructuring Officer, Ronald Hutchinson. Peters, commenting on the meeting, stated, "Julian Day informed us that Kmart had determined through their research that the auto centers provided no value to its core business. Kmart was therefore unwilling to provide any support to PAC and agreed that the best course of action was to close PAC."

Peters added further, "On April 1, Kmart then defaulted on a $5 million payment that was contractually due to PAC as a result of the Kmart store closures announced in March."

PAC will appear before the court in Chicago on April 8 to protect its interests. Peters added, "Our immediate focus is on the well being of our employees and their families as well as our customers. I regret that these actions had to be taken."

PAC, which is owned 64 percent by a subsidiary of Penske Corporation and 36 percent by Kmart, has operated 563 auto service centers at Kmart locations nationwide.

From http://www.collision-insight.com/news/20020408-penske.htm

Doesn't sound like they got what they paid for and Kmart had a hand in putting the company out business despite having a significant interest in it.

[BigBadStang]

Doesn't sound like they got what they paid for and Kmart had a hand in putting the company out business despite having a significant interest in it.

Yeah, Kmart didn't help matters, but Penske should have known making a deal with Kmart to purchase the auto center was shaky at best. It was a risk he took and took a fuckin on it. Penske tried to make a go of it, but the shitty reputation that Kmart Auto Center had was too much to overcome. I remember going to corporate meetings about the Penske deal and how all the "chain" repair outlets were worried about Penske aggressivley going after market share. Initially, they improved slightly, but never gained enough of a share to shake things up. Kmart is a crap organization that treats it's people like dirt, and I'm amazed they haven't destroyed the Sears brand...yet.

[k062693w]

Yeah, Kmart didn't help matters, but Penske should have known making a deal with Kmart to purchase the auto center was shaky at best. It was a risk he took and took a fuckin on it. Penske tried to make a go of it, but the shitty reputation that Kmart Auto Center had was too much to overcome. I remember going to corporate meetings about the Penske deal and how all the "chain" repair outlets were worried about Penske aggressivley going after market share. Initially, they improved slightly, but never gained enough of a share to shake things up. Kmart is a crap organization that treats it's people like dirt, and I'm amazed they haven't destroyed the Sears brand...yet.

Go work on something and KwitUrBitchin !!! :flipoff:

:lol:

[BadBirdLT1]

Or maybe they will build the Sky Redline with a detuned indy car engine.

I love that car and that would be insane BTW. :coo1:

[BigBadStang]

Go work on something and KwitUrBitchin !!! :flipoff:

:lol:

Quit fuckin with me Aaron, and go fix your kids PS3! :evilflip:
:lol: You should have bought that boy a 360.:lol:

[k062693w]

Quit fuckin with me Aaron, and go fix your kids PS3! :evilflip:
:lol: You should have bought that boy a 360.:lol:

I was going to and then when I got to the store I realized I had a set of BALLZ !!! http://i237.photobucket.com/albums/ff282/k062693w/finger.gif

And BTW if I didn't Fuck with you, You would feel neglected !!! :lol::screwy::lol:

[02mingryGT]

Why do you assume they will be going down the toilet? I think by not being obligated to build then in any one factory or being tied to a range of corporate platforms things will actually improve in the long term. With the exception of the products I haven't seen that are being offered by the Chinese and Indian companies most manufacturers today build quality products. Besides, I don't think Roger Penske will sign off on any pile of crap.

It appears Roger is out to make money and most people with that vision tend to think less about a quality product than the bottom line. Lean Management, Six Sigma, Kaizan ect ect are all code words for do more with less or spend less and charge more. All of which leads to inferior products ala GM. And yes everyone is out to make money but when you say you are looking for manufactors across the planet then that tells me you want the cars built as CHEAPLY as possible.

It isn't wrong as a business to cut cost BUT there is a certain point when it becomes detrimentral.

[cstreu1026]

dealing with foriegn manufacturers also means not dealing with the UAW which will save them some cash and headaches.

[BigBadStang]

...And BTW if I didn't Fuck with you, You would feel neglected !!!

Hmmmm....sad, but true! :lol: