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Saturn

From Invertopedia, the encyclopedia of how things fail

Entry 121. An analysis built from the public record, not an insider account. Spot an error? Tell us.

Saturn was a General Motors brand that began selling cars in 1990 to compete with Japanese automakers, and sold more than four million vehicles[1]. In December 2008 GM said it would sell, eliminate or consolidate it as it asked Washington for loans[4]. In June 2009 GM agreed to sell Saturn to Penske Automotive Group[2]. On September 30, 2009, Penske cancelled, and GM began winding down the brand and its roughly 350 dealers[3][1].

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Contents
  1. 1What happened
  2. 2The kill shot
  3. 3The inversion
  4. 4References

What happened

1990Saturn starts selling cars, built to take on Japanese automakers.[1]
Dec 2008GM says it will sell, eliminate or consolidate Saturn, Saab, Hummer and Pontiac.[4]
Jun 5, 2009Bankrupt GM says it will sell Saturn to Penske, a deal said to save more than 13,000 jobs. GM would stop building Saturns by 2011.[2]
Sep 30, 2009Penske cancels. GM winds down Saturn.[3][1]

The kill shot

Penske would have been a distributor, not a carmaker. Once GM's contract production ended, the only other manufacturer it found turned the deal down, and there was nothing left to sell.

Penske's deal depended on an agreement with another manufacturer, and that agreement was rejected by the manufacturer's board of directors[1]. The Wall Street Journal reported the manufacturer was Renault[3].

The inversion

A brand is not a business unless someone is still building the product. Before you buy a name, secure the supply.

References

  1. ^ “GM to End Saturn Brand as Buyer Penske Drops Bid”. AFP via IndustryWeek, October 1, 2009. 1990 start, four million vehicles, Penske's reason, GM wind-down.
  2. ^ “GM to sell Saturn to Penske”. CNNMoney, June 5, 2009. The Penske sale, 13,000 jobs, about 350 dealers, production to end by 2011.
  3. ^ “GM kills Saturn after Penske ends deal”. CNNMoney, September 30, 2009. Penske cancels; wind-down; Renault report; manufacturer board rejection.
  4. ^ “Pursuing U.S. Aid, G.M. Accepts Need for Drastic Cuts”. The New York Times, December 3, 2008. GM's plan to sell, eliminate or consolidate Saturn.
Categories: Corporate · Car brand · Wound down in 2009 · Cause of death: no product · From the public record