Penske Automotive Group, Inc. (NYSE: PAG) has just announced that it has terminated its discussions with General Motors Company to acquire the Saturn brand.
In a statement the Penske Group said concerns “directly related to the future supply of vehicles beyond the supply period it had negotiated with GM.”
GM had agreed to continue producing several products, including the Aura, Vue and Outlook models, for an unspecified time. The company had earlier said it would phase out those products, before 2011.
As a result of Penske’s decision, GM said it will shut down the Saturn brand and dealership network, in accordance with the wind-down agreements that Saturn dealers recently signed with GM. GM said the terms of the shut down would be forthcoming.
In a statement, GM President & CEO Fritz Henderson said, “Today we learned that Penske Automotive Group (PAG) has decided to terminate discussions with General Motors to acquire Saturn. 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. PAG’s announcement explained that their decision was not based on interactions with GM or Saturn retailers; rather it was because of the inability to source new products beyond what it had asked GM to build on contract.”