GMI Exclusive: Saturn Reportedly Dead

[nsap]

GMI Exclusive: Saturn Reportedly Dead
We're hearing from sources that Saturn's death will be announced soon.
www.gminsidenews.com
February 16, 2009
By: Nsap

Last week news broke that Saturn “could be dead within the week.” General Motors, who has received billions in federal loans from the U.S. government must report to the Administration tomorrow with a detailed business plan. Part of that business plan must include what GM plans to do with their buffet of brands. GM executives have made one thing quite clear in regards to their brand management plan: Chevrolet, Cadillac, GMC and Buick are going to be their “core brands” that get most of the attention. Executives claim that Pontiac will be reduced to a “niche brand” and the rest of the North American fleet will up for grabs. It’s already well known that Hummer is for sale and GM would desperately like to unload Saab, but what about Saturn?

GMI has been told by sources very close to the situation that management and the Board of Directors have approved closing the Saturn brand as part of the plan for viability. Several options were considered for the brand, as evident with the influx of statements from various GM executives as of late about Saturn. One option was to merge the brand into the Pontiac, GMC, Buick sales channel (as GMI broke several months ago). GM also looked into selling the Saturn brand to their Chinese joint-venture in order to get the brand out of the GM umbrella.

Ultimately it sounds as if Saturn is going the way of Oldsmobile. GMI was told that the brand will be phased out down to three products; Aura, Vue and Sky. The final plug will be pulled sometime in the 2012 era. We also do not expect any future product from the brand from now on.

One of Saturn’s next flagship vehicles was supposed to launch this year; the 2010 Saturn Aura. That car was going to be a rebadged Opel Insignia for the North American market. Back in July, however, GMI broke news that the next-generation Aura had been placed on hold and was ultimately canceled. That alone led grave signs of the brand’s future.

Back in 2005 GM announced a huge reinvestment into the Saturn division. Within 18 months the Saturn brand had an entirely different lineup; a larger one to boot. Initially sales rose steadily, but the brand never has met GM expectations for sales numbers. Due to Saturn’s relatively low dealership base (just over 400 dealers in the U.S.), the costs of closing the division will not likely hit numbers that the closing of Oldsmobile did.

Other Brands

GMI has also been updated on the status of the other “non-core” brands. The Hummer brand is expected to be sold. GM supposedly still has interested buyers; they are just in negotiations and awaiting the outcome of the federal loans.

In regards to Saab, we’re told that if the Swedish government does not offer a bailout plan for the Saab division GM will morph the brand with Cadillac globally and eventually remove it from the division lineup. The “morph” process would be similar to how GM merged Daewoo and Chevrolet globally, which has been quite successful. If the Swedish government offers a bailout, GM will use that money to separate Saab from the rest of GM in order to make it more attractive to sell off as an asset sale.

[artrix]

I knew this day would to come...

R.I.P Saturn!

['Vette Dude]

My favorite GM brand is gone.

Can't wait to hear what mgescuro has to say about this.

[MrCritical]

When Saturn was first put into action, I'll have to admit I was surprised.

20 years 'till the break even point? You gotta be kidding me!

Surely they have to share the blame for GM being where they are now.

[paul8488]

I'm sorry for Saturn fans, but this might help GM in the long run. It's too bad that GM has already spent a bundle on the North American GMC Terrain (we've already seen prototypes)... they could have sent the Vue to GMC, Astra and Aura to Pontiac, and chopped the Outlook and Sky (or left it for Opel and Daewoo).

[civilzues]

I'm sorry for Saturn fans, but this might help GM in the long run. It's too bad that GM has already spent a bundle on the North American GMC Terrain (we've already seen prototypes)... they could have sent the Vue to GMC, Astra and Aura to Pontiac, and chopped the Outlook and Sky (or left it for Opel and Daewoo).

the current Vue is a POS.

[poncho1982]

Well, we all kinda knew it right?

I am not surprised. Just glad Pontiac may survive in some form.

A leaner GM will be a better GM.

[adplusone]

Code blue

[camaro_freak]

gone the way of Oldsmobile - total lineup revamped and then axed...

Now we've got a brand new Saturn lineup top to bottom and GM pulls the plug.

Way to invest all that money on "re-inventing the brand". Should have stayed true to the plastic body, uniquely American cars with great customer service.

This further proves top GM management needs the boot and GM needs to start over with outside talent. Internally no one is at the helm.

[Jay]

What exactly will Pontiac's niche be?

[nadepalma]

Good write up -- And I guess we all knew it was coming, no?

In regards to Saab, we’re told that if the Swedish government does not offer a bailout plan for the Saab division GM will morph the brand with Cadillac globally and eventually remove it from the division lineup. The “morph” process would be similar to how GM merged Daewoo and Chevrolet globally, which has been quite successful. If the Swedish government offers a bailout, GM will use that money to separate Saab from the rest of GM in order to make it more attractive to sell off as an asset sale.

Wow, I didn't expect that. I hope that they can find a buyer now more than ever. Saab is a great brand and I'd want it to survive, even if its without GM. But to merge them with Caddy? That would be bold and don't know if it would satisfy Caddy or Saab loyalists. Honestly, I think Saab's message would work better with what Pontiac is SUPPOSED to be rather than what Caddy currently is. But that's just me.

[CamaroCrazy]

I'm not surprised either. I was looking forward to Saturn truly becoming the North American outlet for Opel. What can you do. Sales are down, cutbacks need to be made, so if the brand is still a dog after a host of new products, the outcome is obvious.

I rented a loaded VUE XR for the holidays and I loved the thing, it was an excellent vehicle. Bummer to see beautiful cars like the Sky and the Aura go away, even if they were just rebadges.

[2002 Caddy]

It was a mistake in the 90s and it is a mistake now.

Killing it is one of the few smart things that Rick and team have done.
RIP Saturn.

[t-rex]

What exactly will Pontiac's niche be?

Rebadges.

Anything to keep from having pay off the 1,538,256 Pontiac dealers out there...

[FenwickHockey65]

Doesn't surprise me at all.

You've had a good, long run, Saturn. Time to pull the plug.