(Bloomfield Hills, MI) to terminate its discussions with General Motors Co. (GM) to acquire the Saturn brand. Penske, which is an international automotive retailer, initiated talks with GM on June 5 and since that time has been determining the feasibility of a supply, service, and distribution scheme, including a definitive agreement with GM to source vehicles on a contract-manufactured basis for a period of time. After that time had elapsed, Penske required GM to source vehicles from a third party under a similar contract-manufacturing agreement.
Penske Automotive Group negotiated the terms and conditions of such an agreement with another manufacturer, but said in a release that the agreement was rejected by that manufacturer’s board of directors. “Without that agreement, the company has determined that the risks and uncertainties related to the availability of future products prohibit the company from moving forward with this transaction.”
On June 6, GM and Penske announced a proposed transaction under which Penske would acquire Saturn, saying at the time the deal would save 350 dealerships and 13,000 jobs at Saturn and its retailers. According to the company, Saturn began selling cars in 1990 and has sold more than 4 million vehicles since it began operations. The company applied polymers in a number of exterior components, replacing sheet metal and molding the applications in house. See Injection Molding Magazine’s plant tour here. —[email protected]