GM Gives Update on Saturn

When GM originally announced plans to cut the Saturn brand, me and many other analysts thought the brand was toast. Does anyone have the patience and money to turn it into a viable position? Standing alone independently is very hard, especially with economic conditions like this. So it's with surprise that good news for the future of the brand continues to roll on in. I think GM is very surprised as well.

In outlining it's recent acceleration of it's restructuring/Viability Plan released on Monday, April 26th, GM announced it was giving the brand until the end of the year to find a new owner. The old 2012 date? No more, due to the worsening of GM's financial straits.

To help sort out the whole situation (and I assume get the best price) GM has retained the services of S.J Girsky & Company. GM hired the company earlier this year but will be keeping them throughout the transaction process.

In addition to helping GM find a buyer, the company has also done feasibility studies on the brand and it's possible future in the U.S market as an independent firm. GM is looking to secure an agreement with a buyer by the end of the year and is currently reviewing "expressions of interest from the potential buyers".

Foreign car companies (including competitors to GM) as well as investment firms have put in offers. Apparently Oklahoma City-based Black Oak LLC is really angling hard for the brand. It would employ a unique strategy, leaving dealers to select what cars to sell in an almost department-store approach to selling vehicles.

A variety of brands would be sold. It seems like a far out idea to me; is it a viable business proposition? Who would supply the vehicles? Under that proposal, Saturn would become little more then a retail auto sales chain. I think Saturn can do better than that.

The dealers are very eager to keep the brand going and I've seen some intensive advertising efforts by local Saturn dealers to keep the name out there and assure potential buyers about a sale. So that is a really good thing for any future buyer to see; Saturn's retail network is a big selling point. Regardless, things seem to be moving forward quickly towards a Saturn sale, which is a good thing. GM expects to have an announcement by the third quarter of the year.