BREAKING NEWS! BREAKING NEWS!
Penske Automotive and General Motors announced this morning that the two companies have reached an agreement that would GM would sell GM's Saturn brand to Penske Automotive. Penske Automotive has signed a memorandum of understanding that would sell the Saturn group to Penske Automotive, that would include the dealer network of 350 dealerships and other properties and would retain all 13,000 Saturn employees.
Roger Penske is set to retain former Chrysler Co-President Tom LaSorda who joined the company in the past month in a consulting role in the negotiating process for Saturn.
Saturn would be wholly owned by Penske Automotive and possibly looks to partner with Renault-Samsung to produce it's line of vehicles in the US for the remaining Saturn dealer body. Penske indicates that he wants to produce all vehicles for the brand here in the United States.
The deal has a 60 day due diligence clause and must meet certain obligations that is directly associated with the bankruptcy proceedings going on with GM.
Although, the Penske group has declined to inform the media of an asking price it is being reported by Bloomberg News that it is paying between $100 - $200 million dollars for Saturn.
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Kevin Kimbrough
That Car Guy
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