GM accelerates Saturn shutdown to this year

No plans to rebadge Pontiac models


Richard Truett
Automotive News
April 27, 2009 - 9:37 am ET

General Motors plans to build the last Saturn vehicles this year, two years earlier than planned, as it speeds up plans to shed dealerships and divisions, CEO Fritz Henderson said today.




The Saturn brand still may survive if GM can sell it to another automaker or investor, but GM no longer will build vehicles for Saturn after the 2009 model year, Henderson said on a conference call.

In its Feb. 17 plan submitted to the U.S. auto task force, GM planned to build Saturn vehicles through 2011. Under a revised plan announced today, GM will shed Pontiac next year, leaving the automaker with just four U.S. brands: Chevrolet, Cadillac GMC and Buick.

Henderson also said that GM no longer will build Hummer vehicles after the current model year.

No Pontiacs rebadged

No Pontiacs will be rebadged as Chevrolets, he said. The new G8 sports sedan will be dropped as will the Solstice sports car. Henderson said the Pontiac Vibe could be built into 2010, pending negotiations with manufacturing partner Toyota Motor Corp., which assembles the same car as the Toyota Matrix at a joint venture plant in California.

GM has begun talks to sell Saturn to a private equity group working with Saturn dealers.

"If a sale of Saturn does not occur, we intend to phase out the Saturn brand by the end of 2009," GM said in its government filing today.

"As a result, our current Viability Plan does not comprehend production and sales to dealers of Saturn products beyond 2009."

Earlier this month, an investor group called Telesto Ventures said it wants to acquire Saturn's retail operations and provide dealers with vehicles from GM through 2011 and from mostly overseas manufacturers thereafter. A GM spokesman called the group's proposal legitimate and "very interesting." He said there also were other parties interested in Saturn.

A Telesto spokesman said his group was in discussions with several unidentified foreign manufacturers.

He said Telesto, which was formed specifically for the Saturn venture, encompasses a private equity firm, Black Oak Partners LLC, of Oklahoma City, and several other investors. It's unclear how much money is backing Telesto and what automotive experience it has.

Dealer reaction

John Danielson, sales manager at Saturn of the Lakes north of Orlando, Fla., said he has 100 new Saturns in stock. The store sold only eight new Saturns last month. Monday's announcement confirmed a rumor Danielson said he heard last week.

"Business is very tough right now. Our new and used is down 50 percent over last year," said Danielson. Some deals for new cars that have not yet been delivered are now in danger of falling through because of GM's announcement Monday that no new Saturns will be built after the 2009 model year.

Danielson, who worked at the store when it was an Oldsmobile dealership, said he expects GM to come out with new incentives to persuade customers to buy the final models.

 

Disappointed about the G8.

 

Saab/Hummer/Saturn - production ends in 2009 -- Pontiac by 2010.
Dealer body goes from 6208 to 3605 -- 42% reduction - dealers will be told by end of May.
Another 12000 plus jobs going away. (salaried only, more white collar to be announced)
Thirteen nameplates eliminated -- 34 left.

 

VERY disappointed about the G8 not going to another division. That is one of the best cars GM has available in NA...

 

Lots of weight being shed from GM in a hurry...

 

f...

 

I hope whoever buys these brands turns them around and makes them profitable as a big FU to GM

 

Son of a b****.

My wife and I like Saturn, and their new lineup is rather competitive. Oldsmobile all over again (the Alero, Intrigue, Aurora, and even Bravada were all quite good cars, then BANG).

The G8 pisses me off immensely, as well. My brother and I were just talking about this yesterday.

This sucks.

 

The G8 GXP might become a heck of a collectors car. The production numbers on them should be ridiculously low.

 

What about the Solstice coupe? Have any salable models actually been built? They could end up even more rare than the G8 GXP if so...

 

I told my dad today when we talked about this. I said "if there's one Pontiac I'd buy it's the Solstice Coupe."

We're lucky to see 5,000 of them made, probably more like 3,000 of them! They just started production on them within the last month and yes, there ARE saleable units on lots.

 

Good to hear that at least some were being made. I knew they'd run some test units, but hadn't heard anything about salable cars. I see there are a few dealers that have them.

Wonder how many they'll build before Wilmington is closed? I'd assume it's going to close sooner rather than later with both Saturn and Pontiac going away.

 

I wish the Sky and G8 could live on as Chevys. I also think the Vibe could do well continuing on. I really liked it (for the kind of practical car it is) before the most recent restyling. Now that I think about it, almost all of the other Pontiac and Saturn models are already sold under another name in Chevy showrooms (G3, G5, G6, Torrent, Aura, Vue....)

 

To echo others comments...that really sucks about the G8 and Solstice/Sky. I was at least hoping they would retain niche-brand status

 

So if the government is sitting on a pile of GM stock, wouldn't it be in their best interest to make sure GM does not go into bankruptcy? Or would this be post-bk stock?