General Motors Corp. has confirmed that it is moving ahead with talks on a possible sale of Saturn Distribution LLC to one of two groups of private investors that have expressed an interest in the dealership network.
The objective of a deal would be to turn Saturn Distribution LLC, which is now wholly owned by GM, into an independent distribution company that would handle vehicles from other manufacturers after its contracts with GM runs out in 2011. GM has said it would continue to supply vehicles to Saturn until then but its decision to sell – or, if necessary, even close – Saturn is now irreversible.
As noted in GM’s viability plan, GM announced it would review the potential spin-off or sale of Saturn and if those options did not prove viable, Saturn’s operations would be wound down over time. Over approximately the past 60 days, a sub-committee of Saturn retailers has been studying the feasibility of the sale or spin-off option, and has identified some parties that are potentially interested in a purchase or spin-off of Saturn.
“We are advised that one of the interested parties is Black Oak Partners (Oklahoma City.) We are not at liberty to discuss any other interested party. With respect to what the eventual outcome concerning Saturn might be with Black Oak or any other interested party, it is simply premature at this time to speculate on what any eventual outcome may be,” GM said in a statement.