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Kia Asking Saturn Dealers To Consider Selling Korean Cars
Jun 24, 2009 - 4:15 PM - by Administrator

While GM has reached a deal with Penske to sell off its Saturn brand, the future for dealers is anything but certain and Korean automaker Kia is hoping to capitalize on that.

Kia dealerships are often in either rural areas or less popular urban areas because land in high-traffic and densely populated urban areas is just too expensive. With both GM and Chrysler eliminating dealerships in urban areas, Kia intends to take advantage of this opportunity and make a big push. And with many well-appointed and nicely designed Saturn dealers conveniently located in those higher traffic areas, Kia hopes to convince Saturn retailers into switching to the Kia line.

In an interview with Automotive News, Kia executives said that the fact the Saturn dealerships are new and ideally-located is important, but the main factor is their availability.

Kia is targeting Saturn dealers in three main ways. First, it is looking to buy Saturn dealerships that are closing or closed and convert them to Kia dealerships. Second, it is seeing if any... [Read More]
10 Replies | 345 Views
General Motors Agrees to Sell Saturn Brand to Penske
Jun 05, 2009 - 11:14 AM - by Administrator

General Motors has reached an agreement with the Penske Automotive Group on the sale of its Saturn brand. An official announcement is expected to be made by both parties later today.

The Penske Automotive Group was thought to be one of the front-runners in the bidding war, which also reportedly included Nissan/Renault, Mitsubishi and investment firm Telesto Ventures.

The news comes just days after GM sold off its Hummer brand to Chinese industrial equipment manufacturer Tengzhong.

The Penske Automotive Group is comprised of several key automotive related companies and boasts the second largest dealer network in the U.S., accounting for sales of 171,872 vehicles in 2008.

Penske also distributes the SMART car throughout the United States under a deal with Mercedes parent company Daimler.

As a former race car driver, Roger Penske continues to be involved in motorsports, and currently runs teams in three major racing series: the NASCAR Sprint Cup, the American Le Mans Series (ALMS) and the Indy... [Read More]
30 Replies | 1,608 Views
GM Says It Has 16 Different Buyers For Saturn, Three for Saab
Jun 03, 2009 - 1:29 PM - by Administrator

With news of a tentative deal to sell off Hummer coming yesterday, GM still hasn't made any decisions about its Saturn or Saab brands - but apparently it has plenty of offers to entertain.

GM CFO Ray Young said that Saturn has as many as 16 suitors, while the Swedish Saab brand has three.

The list of Saturn buyers is reported to include Penske Automotive Group, Malcolm Bricklin, Mitsubishi, Nissan/Renault and investment firm Telesto Ventures.

Young did say that it is interested in working with the Saturn buyer when it comes to vehicle assembly.

As for Saab, Swedish business paper Dagens Industri is reporting that the three buyers are U.S. financier Ira Rennert and his Renco Group, Fiat and Swedish supercar maker Koenigsegg.

More: GM Says It Has 16 Different Buyers For Saturn, Three for Saab on AutoGuide.com
0 Replies | 193 Views
Magna Wins Opel Bid, Wants to Build Cars in Canada
Jun 02, 2009 - 10:33 AM - by Administrator

By solidifying a deal to take control of GM's European operations, Canada's Magna International Inc. is eager to start producing Opel cars in Canada.

"We want to build Opel cars in Canada," said company founder and CEO Frank Stronach. "Canada should have its own Canadian company … a truly Canadian automobile industry."

The third largest auto parts supplier in the world, Magna certainly has the resources and the know-how - it just doesn’t have the facilities to build cars in Canada. That, however, might all change as Chrysler may close operations and General Motors Canada recently shut down its truck plant in Oshawa, Ontario.

The lower value of the Canadian currently would likely help matters and should be enough to easily offset the cost of shipping vehicles to Europe - although it's not clear that Canadian-built cars would be for the European market, as moving production outside of Germany would certainly be a devastating public relations move.

What Stronach may have in mind is for Opel-based cars to be... [Read More]
1 Reply | 309 Views
General Motors Bankruptcy Official
Jun 01, 2009 - 10:22 AM - by Administrator

While President Obama and General Motors CEO Fritz Henderson are both expected to hold press conferences today, officially GM has already filed for Chapter 11 Bankruptcy Protection.

Once the world's largest automaker and a symbol of the success of free market economics, GM is now a symbol of failure. In the 1950s it employed over 500,000 people and produced more than half of all the vehicles sold in the United States. Now it also holds the dubious title of the world's third-largest bankruptcy - and the largest bankruptcy for a manufacturing company.

General Motors, backed by yet another government loan from the U.S. Treasury is expected to get the same fast-tracked bankruptcy proceedings as the smaller U.S. automaker Chrysler - which filed for Chapter 11 just one month ago and which already appears to be emerging. Just yesterday a judge approved the sale of Chrysler's assets to a group comprised of Fiat, the U.S. government and the UAW. The Chrysler Chapter 11 proceedings were seen by many as a practice for the much larger... [Read More]
15 Replies | 451 Views
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