- June 8, 2009
Penske decides to buy Saturn from General Motors
The automobile giant and the owner of Penske Automotive, Robert Penske has decided that Penske automotives will buy Saturn from the General Motors. The deal was finalized on Friday, and the deal will close in the third quarter. GM would still continue its production of Saturn Aura, the Vue and the outlook but it would do all these for Penske Automotive on a contract basis. The automobile experts hope that this deal will further strengthen Penske Automotive which the world second largest car retailer company now.
When asked about the deal GM said that, this deal has saved around 350 Saturn dealers and more than 1300 jobs at the Saturn. Penske spoke out to the press and praised Saturn for its customer base and the dealer network.
The financial details of this deal has not come out legally on any of the magazines though Bloomberg News report has estimated the price of this buy to be around 100 to 200 million US dollars. If this deal goes good, it would add another feather on the giant Penske’s hat. On the other hand the deal also indicates the break down of GM which has already filed bankruptcy and is selling of some of its brands to restructure the entire organization.