Investor Group Interested in Saturn, Journal Reports
April 15, 2009
DETROIT -- An investor group that includes a number of Saturn dealers said it has
approached General Motors to acquire and operate the principal assets of Saturn, the Wall Street Journal
reports. The investors say Saturn would benefit as an independent entity. If successful, the new company would outsource Saturn production, initially to GM, and eventually sell "smaller, fuel-efficient vehicles" from a range of companies.
GM said in its February 17 viability plan submitted to the federal government that it would phase out Saturn by 2011, when most of its models reach the end of their life cycle, unless a new arrangement could be made.
Private-equity firm Black Oak Partners LLC said it was working with Saturn retailers to acquire Saturn Distribution Corp., the group that franchises with Saturn retailers, the Journal said. The entity didn't disclose any monetary offer and an official declined to comment, though it did say informal talks began last month, the Journal reported.
In a statement, group spokesman John S. Pappanastos said, "GM will be relieved of liabilities related to retailer franchise agreements and avoid the downstream financial fallout on their other brands that would result from closing Saturn retail facilities."
He said the move would salvage more than 10,000 retail jobs that might otherwise be lost in a GM reorganization and "mitigate the potential for substantial local economic impact from Saturn retailer bankruptcies."
GM had little comment on the specific group except to acknowledged it has been advised that Black Oak Partners is one of the parties interested in Saturn.
"We are not at liberty to discuss any other interested party," a statement by GM said. "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."
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