GM Stops Saturn Production; What Now?

GM stopped producing new Saturns yesterday after news broke that its deal to sell the brand to Penske Automotive Group fell through. People were shocked in both the executive suites of Detroit and the 350 Saturn dealerships across the country. Add in the thousands of Saturn owners and potential buyers, and there’s a lot of confusion over the future of GM’s formerly “different” car company. Here’s what you need to know if you’re a Saturn owner or potential buyer.

Saturn Deal Falls Through, Brand to Die

Today, Penske Automotive Group is withdrawing its plan to purchase Saturn from GM. In turn, GM has issued a statement declaring it will not seek other buyers for Saturn and will wind down the brand and its dealers.
 
The terms of this process — including how long new Saturns will be produced and sold — will be announced at a later date.

Penske cited problems securing deals to sell other makes and models besides the current crop of GM-sourced vehicles. The company said a deal with a third party to make future Saturns fell through and that led to the deal’s termination.

Saturn now joins Pontiac and Oldsmobile in the GM graveyard. The sale of Hummer is still ongoing.  

No New Saturns or Hummers after 2009

During GM’s announcement today that Pontiac would no longer exist after 2010, the company also said it would stop producing new Saturns after the 2009 model year and Hummers by the end of 2009.

Previously, GM had said it would build Saturn through 2011. The 2009 model year is currently being sold; GM generally switches over to the new model year during the summer. This means no new Saturns — and likely no new Hummers — will roll off assembly lines after this summer.

While the end of Pontiac may be seen as a sad day to automotive buffs, the same can’t be said for Saturn and Hummer. The two brands don’t have the cachet or fanbase of the 83-year-old Pontiac. However, this accelerated timeline caught the industry off guard.

If you’re thinking of buying a car or SUV from either brand, spokesmen from both companies say that they will be fully backed by GM’s warranty until either brand is sold. That same warranty is also backed by the U.S. government for any GM vehicle sold through May 31.

Both Saturn and Hummer are in the process of being sold to new owners. There are a number of scenarios for each brand, which we detail below.

Saturn: We're Still Here

As General Motors fights for its own survival, its subsidiaries — Saturn and Saab — were the first to feel the effects of the automaker’s empty coffers. Saab has already declared bankruptcy, cut 750 jobs and reduced production. There are reportedly a number of “interested parties” who might save the brand from absolute closure.

As for Saturn, GM fully intends to jettison the brand by 2012, with or without a buyer. With Saturn’s possible death out in the open, sales have fallen precipitously, down more than 50% since the beginning of 2009 compared to the same time frame in 2008.

According to The New York Times, in order to keep its few remaining customers, Saturn will roll out a new ad campaign this spring. One of them is featured above and one below. The campaign reminds viewers that despite all the depressing news surrounding Saturn, the brand is still here with all its cars and most of its dealerships intact.

Recall Alert: 276,729 GM Vehicles From 2009 Model Year

GM has issued a wide-ranging recall for several brands and models from the 2009 model year, all affected by a potential malfunction in the transmission shift cable, according to the National Highway Traffic Safety Administration.

Affected models include the Buick Enclave, Chevrolet Cobalt, Chevrolet HHR, Chevrolet Malibu, Chevrolet Traverse, GMC Acadia, Pontiac G5, Pontiac G6, Saturn Aura and Saturn Outlook.

The problem has to do with a clip to the transmission cable, which may not lock into place. Therefore, the lever on the transmission may seem like it’s in the proper position when in Park, but the car might still roll away.

Dealerships will inspect the cable and replace the clip if necessary, free of charge. Owners can contact Buick at 866-608-8080, Chevrolet at 800-630-2438, GMC at 866-996-9463, Pontiac at 800-620-7668 and Saturn at 800-972-8876. They can also contact the NHTSA Vehicle Safety Hotline at 888-327-4236.