DETROIT — General Motors said Wednesday it would shut down its Saturn brand after an agreement with Penske Automotive Group 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 to acquire the brand.
GM chief executive Fritz Henderson said in a 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,” the statement said. “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 said 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.
GM said Saturn vehicle owners can still go to their Saturn dealer for service and to a certified GM dealer for service once Saturn dealerships are closed.
The Penske deal had been expected to close in the coming days.
