“UPDATE: GM to shut down Saturn after Penske walks away - WZZM 13” plus 4 more

UPDATE: GM to shut down Saturn after Penske walks away - WZZM 13
Subaru factory in Indiana rolls out 3 millionth vehicle - Ibj.com
GM to shut down Saturn - ABC2 News
Saturn to shut after GM sale falls through - Chicago Tribune
Get car lights replaced for free Saturday in Whatcom County - Tacoma News Tribune

UPDATE: GM to shut down Saturn after Penske walks away - WZZM 13

Posted: 30 Sep 2009 11:11 PM PDT

DETROIT (AP)- General Motors says it's going to shut down its Saturn division.

GM says a deal to sell Saturn to Penske Automotive Group has fallen apart.

Penske walked away after it was unable to find a manufacturer to supply vehicles to it after a contract with GM runs out in 2011. A tentative deal for Saturn was announced on June 5.

GM CEO Fritz Henderson said in statement that Saturn and its dealership network will be phased out. He called it "very disappointing news" after months of hard work by Saturn retailers and employees.

Penske said it negotiated with another manufacturer to make Saturn cars, but that company's board of directors rejected the agreement. A spokesman didn't identify the other manufacturer.

GM had agreed to keep building the Saturn Aura, Outlook and Vue models through 2011. After that Saturn would have to come up with its own products.

From the Associated Press

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Subaru factory in Indiana rolls out 3 millionth vehicle - Ibj.com

Posted: 30 Sep 2009 10:03 AM PDT

Workers at a Subaru plant in central Indiana cheered as its 3 millionth vehicle reached the end of the production line.

The Lafayette factory celebrated the milestone Tuesday, just a couple weeks after it marked the 20th anniversary of its opening.

Senior vice president Tom Easterday told workers that he'd bet on the plant completing its next million vehicles sooner than planned because of the popularity of the Subaru Legacy, Subaru Outback and Toyota Camry models now being built there.

About 3,300 people currently work at the plant, where production peaked at 216,198 vehicles in 1998 and is projected at 158,000 this year.

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GM to shut down Saturn - ABC2 News

Posted: 30 Sep 2009 03:54 PM PDT

DETROIT (AP) — General Motors Co. will shut down Saturn now that a deal with former race car driver and auto dealer magnate Roger Penske has collapsed, marking the end of a brand that was supposed to revolutionize the way small cars were built and sold in America.

The deal with Penske was supposed to be finalized Wednesday. But 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 like the Aura, Outlook and Vue through at least 2011, but after that, Saturn would have to come up with its own products.

Penske's tentative deal buy Saturn was announced in early June.

"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 CEO Fritz Henderson said. He said Saturn and its dealership network will be phased out.

Although the sales price was never disclosed, Penske was to get Saturn's roughly 350 dealerships and promised to retain 13,000 employees.

Penske spokesman Anthony Pordon said the company had reached a tentative deal with another automaker to make cars for Saturn, but that company's board of directors rejected the agreement. He would not identify the other automaker.

Pordon said there is little if any chance that the talks could be reopened.

Shares of Penske fell $1.89, or 9.9 percent, to $17.29 in after hours trading as PAG's expansion attempt failed. Shares rose $1.32, or 7.4 percent, to $19.18 in regular trading Wednesday.

Without another supplier in place before the deal was signed, Penske couldn't run the risk of taking on Saturn, Pordon said. It takes several years to design new vehicles or engineer foreign vehicles to meet U.S. standards. Penske would risk having no products to sell once the GM contract expired.

The Saturn announcement came on the same day GM and Chrysler met on Capitol Hill with dealers and lawmakers as talks began on the companies' plans to close around 3,000 dealerships. GM is cutting 2,400 dealerships from its 6,000-dealer network by the fall of 2010. Congress is weighing legislation that could force the automakers to reverse their closure decisions.

GM will stop making Saturns as soon as possible, but no layoffs are expected, said spokeswoman Sherrie Childers Arb.

GM had stopped building the Aura midsize sedan in Kansas City, Kan., and will not resume assembling them. Production of the Outlook large crossover near Lansing, Mich., and the Vue small crossover vehicle in Ramos Arizpe, Mexico, will be phased out as soon as possible, she said.

"Those plants produce products for other brands, and we think we can increase volume on those products that will meet market demand," Childers Arb said.

Saturn owners can still go to Saturn dealers for service. They would also be able to go to a certified GM dealer once Saturn dealerships close, GM said.

The news left many of dealers across the country, who had expected the sale to close Wednesday, stunned and fearful of being left with nothing to sell.

Carl Galeana, owner of two Saturn dealerships in suburban Detroit, said he's heard nothing yet from GM or Saturn, but if the plan is to phase out the brand and cut the products, he'll have to come up with other options.

"We're going to try to put some plan Bs in place at this point."

GM Chairman Roger Smith first unveiled the Saturn brand in November 1983. But the project was slow to develop and the brand did not officially launch until 1990. It featured the iconic tag-line "a different kind of car company."

GM's hope was that Saturn would attract younger buyers with smaller, hipper cars to better compete with Japanese imports. It built a new plant in Spring Hill, Tenn., devoted to Saturn vehicles.

Despite a cult-like following that drew thousands to annual reunions in Spring Hill, the brand never made money for GM, although the company has never disclosed how much it invested or lost. The Tennessee factory stopped making Saturns in 2007. Although it was retooled to build the Chevrolet Traverse large crossover, production of that vehicle will be switched to Delta Township, Mich., near Lansing and the Spring Hill assembly plant will be closed and placed on standby if demand for GM vehicles increases. The fate of parts making operations in Spring Hill was unclear.

As GM focused more on high-profit pickup trucks and SUVs, Saturn began to languish in the late 1990s. Then in 2006, car buyers began to find Saturn's new models more appealing. But after a good year in 2007, sales dropped 22 percent last year as the U.S. car market withered. Through August, Saturn sales were down 60 percent from the first eight months of last year.

GM has been trying to sell Saturn since earlier this year as part of its turnaround plan.

"I find this hard to believe," said Saturn dealer Galeana. "Everyone's been saying we're right at the goal line."

AP Auto Writer Bree Fowler in New York contributed to this report.

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Saturn to shut after GM sale falls through - Chicago Tribune

Posted: 30 Sep 2009 02:21 PM PDT

DETROIT - (AP) -- General Motors Co. said Wednesday it would shut down its Saturn brand after an agreement with Penske Automotive Group Inc. to acquire it fell apart.

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

GM CEO Fritz Henderson said in statement that Saturn and its dealership network will be phased out.

"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," Henderson said in a written statement. "PAG's announcement explained that their decision was not based on interactions with GM or Saturn retailers."

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

Penske said it negotiated terms and conditions to make Saturn cars with another manufacturer, but that company's board of directors rejected the agreement. Penske spokesman Anthony Pordon would not identify the other manufacturer.

"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 a statement. In June, GM and Penske agreed to take over the Saturn brand and related dealerships, although GM would produce the vehicles for a limited period of time.

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

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

Share of Penske fell $1.93 to $17.25 in after hours trading. They rose $1.32, or 7.4 percent to $19.18 in regular trading Wednesday.

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Get car lights replaced for free Saturday in Whatcom County - Tacoma News Tribune

Posted: 30 Sep 2009 11:40 PM PDT

With daylight hours steadily decreasing, local auto repair and supply companies want to make sure Whatcom County drivers have all their lights in good working order.

Repair shop owners will be at Bellingham High School and Everson Elementary School on Saturday, Oct. 3, to inspect and replace broken exterior lights on cars free of charge during the annual Lights-On program.

The only exception is they won't replace high-end bulbs, such as halogen lights. However, they will install them if a driver brings a high-end replacement light in, said Kirk Norkoski of Angler Automotive.

It's a way of helping drivers prepare for the fall and winter months, he said.

"Now that the days are getting shorter, it's a good time to stress the importance of safety," Norkoski said. "The Lights-On program is our way of helping the community be safer on the road."

Lights-On got its start locally 36 years ago and is now a statewide program, sponsored by the Automotive Service Association in support of National Car Care Month.

Norkoski estimates about 30 shop owners will be at the two sites, providing the inspections. Bellingham Auto Parts and Seattle Automotive Distributing are supplying the replacement bulbs.

Last year, the local repair shop owners inspected and replaced burned-out light bulbs for more than 250 vehicles.

LIGHT REPLACEMENT

What: Local mechanics will inspect and replace burned-out car lights.

Where: Bellingham High School, 2020 Cornwall Ave, and Everson Elementary School, 216 Everson Goshen Road.

When: 9 a.m. to 1 p.m. Saturday, Oct. 3.

Cost: Free.

Exceptions: Those wanting high-end lights replaced should bring the replacements; they will be installed for free.

Reach DAVE GALLAGHER at 715-2269 or dave.gallagher@bellinghamherald.com.