Saturn reaches end of the road

GM is scrapping Saturn.

General Motors' deal with auto dealer magnate Roger Penske to purchase the brand collapsed Wednesday. The unexpected end came when his company, Penske Automotive Group Inc., was unable to find a manufacturer to supply vehicles for the brand's dealerships.

GM had agreed to keep building Saturn models, such as the Aura, Outlook and Vue, through next year, but after that, Saturn would have to come up with its own products.

GM has one local Saturn dealership. Owner Robert Crews said he plans to keep selling and servicing cars at the North Charleston site and see what unfolds.

But Crews' days with the brand may be numbered because GM plans to begin phasing out the dealership network.

Penske, citing concerns of whether it could continue to supply vehicles after a manufacturing contract with GM ran out, ended talks with the auto giant Wednesday to acquire the 19-year-old brand.

"This is very disappointing news and comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality," GM Chief Executive Officer Fritz Henderson said in a statement. "PAG's announcement explained that their decision was not based on interactions with GM or Saturn retailers."

Penske said an agreement with another manufacturer to continue producing vehicles after GM stopped making them fell through, leading the Bloomfield Hills, Mich.-based auto retailer to terminate talks with GM.

Penske said it negotiated terms and conditions to make Saturn vehicles with the unidentified car maker, but that company's board of directors rejected the agreement.

"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," the company said.

In June, GM and Penske agreed to take over the Saturn brand and related dealerships, although GM would produce the vehicles through 2010. Penske would have sold the cars for GM. Penske said it would find another third-party manufacturer to make Saturns in 2011.

It was widely expected that GM would announce the completion of Saturn's sale to Penske in the coming days.

GM said Saturn vehicle owners can still go to their Saturn dealers for service and would be able to go to a certified GM dealer for service once Saturn dealerships are closed.

Reached at his Rivers Avenue dealership late Wednesday, Crews said he remains optimistic talks can be salvaged.

"I hope they can work this out," he said. "People a lot more in the know than me are working on this, and we will continue to take care of Saturn owners here. I'm really waiting to see how things unfold with them. In the next 24 to 48 hours, we'll have a lot more information."

Saturn history

A timeline of General Motors' Saturn brand:

GM announces plans for the Saturn.
First Saturn cars available to consumers. Company becomes known for its no-haggle pricing.
Saturn sales reach annual peak at 286,000.
Saturn introduces the Vue crossover vehicle.
After being what some dealers say "neglected" by GM, Saturn introduces a larger crossover, the Outlook, and the Sky Roadster.
Saturn sales fall 22 percent from the previous year. GM says it's reviewing Saturn's future.
GM, under government pressure to restructure, says it will phase out or end the brand. In June, following GM's bankruptcy filing, Penske Automotive Group emerges as a buyer. Talks to complete the sale abruptly end Wednesday.