GM Narrows Saturn Bidders To Just Three
With GM facing bankruptcy, three bidders out of larger list of interested parties have voiced their interest in Saturn. Expect GM to choose a buyer among the three in the coming weeks.
With the clock running out on GM's bid to restructure,
the automaker is working diligently to unload three of its brands, Saab, Saturn and Hummer. Of the three, Saturn appears to offer the most interest with its industry leading dealer network being the prize that bidders seem to want. Though GM hasn't said who the three bidders are, media reports are indicating that the remaining parties are each strong candidates to take over the 25 year old brand.
A Buyer For Saturn
From our own bit of sleuthing we believe the three final candidates are as follows:
Penske Auto Group – The second largest dealer chain in the nation has publicly expressed interest in Saturn and could be an excellent fit for the brand. Penske already has experience with bringing cars to the market as it is the exclusive dealer for Daimler's Smart car brand. Likely, Penske would acquire Saturn and then seek out a partnership with a Chinese or Indian automobile company to bring those cars to the US.
Magna International – The huge Canadian auto parts supplier lost out on its 2007 bid for Chrysler and is currently one of the finalists battling Fiat for control of GM's Opel division. Magna is well connected, has deep pockets and could offer a similar arrangement with an Asian automobile manufacturer to sell their cars through the Saturn network.
Black Oak Partners – A group representing Saturn dealers is looking to wrest the brand away from GM and has offered their own bid. Though the arrangement looks to be a natural one, GM is likely to go with the highest bidder, thus Black Oak will likely be easily outbid by Penske and Magna.
Selling Off Saturn Hurts
Saturn's sale has been one of the most wrenching decisions by GM as the automaker invested untold billions of dollars to launch its import brand fighter, its first cars introduced in 1990. With an original factory in Spring Hill, Tennessee, the automaker attracted a cult-like following of fans who have seen Saturn go from an independent, wholly owned company to become a division of General Motors.
General Motors is expected to declare bankruptcy on or about the June 1st deadline the federal government set up earlier this year. That move will allow the company to restructure by separating its bad assets from its good assets. Saturn, Saab, Hummer and Pontiac are expected to be treated as its bad assets while Cadillac, Chevrolet, Buick, GMC, OnStar and other GM product lines will be treated as its good assets.
