Pontiac, Saturn Go on Fire Sale

With the fates of Pontiac and Saturn sealed, GM will face the prospect of moving the last vehicles of those brands off lots, and that’s good news for consumers. The automaker will offer extremely nice incentives to put you in a car from one of the discontinued brands.

This could both inflate GM’s December sales and cut the cost of a Pontiac or Saturn vehicle by as much as 46% off the sticker price.

The end-of-brand fire sale was sparked by a Dec. 23 letter sent from GM to its dealers saying it would pay them $7,000 for every new Saturn or Pontiac that is moved to rental-vehicle or service-vehicle fleets of the dealers. The vehicles then would have to be described as used to customers because the dealer will technically be the first owner. But the discount could still be tremendous.

The cost of the program to GM will be considerable, and Ward’s Auto estimates that as of December, GM still has 14,500 new Pontiacs and Saturns on the lots. GM has not commented on the financial impact. All deals on parts, service and warranties remain covered by GM.

If you’re looking to capitalize on the deal, you’d better hurry. The offer expires Jan. 4, the last day of the December car-sales month.

GM Plans Pontiac Fire Sale (Wall Street Journal)

Recall Alert: 52,937 GM Compact Cars

GM has issued a recall for 52,937 vehicles, including the 2006-2007 Chevrolet Cobalt, 2007 Pontiac G5 and 2006-2007 Saturn Ion, according to the National Highway Traffic Safety Administration.

The recall is for vehicles sold or currently registered in Arizona, California, Florida, Nevada and Texas and is due to a plastic supply or return port on the modular reservoir assembly that could crack. If either of these components cracks then fuel will leak, which could cause a fire if it ignites. The fuel leak may be visible depending on the size of the crack.

Dealers will replace the fuel pump module for free. Even if you do not own a vehicle sold or registered in the aforementioned states, check with your dealer all the same. Some vehicles from the same timeframe in other states may be eligible for special warranty coverage.

Owners may contact Chevrolet at 800-630-2438, Saturn at 800-972-8876 and Pontiac at 800-620-7668 or NHTSA’s hotline at 888-327-4236.

2007|Chevrolet|Cobalt

2007|Pontiac|G5

2010|Saturn|Ion

GM to Offer Free Oil Changes to Pontiac, Saturn Owners

You read that right. General Motors wants to make sure current Pontiac and Saturn owners consider a new GM vehicle for their next car purchase by offering free oil changes at a Chevy, Buick or GMC dealer. That way the freebie takers will peruse new GM products from brands the company didn’t kill off in bankruptcy while they’re waiting for their car’s oil to be changed.

Final details on the offer will be released next week, including if it’s just a single oil change per customer or more. It sounds like a good idea to us, and most people we talk to like free things. What do you think?

GM Eager to Retain Pontiac-Saturn Customer Base (WardsAuto.com)

Consumer Reports' Top 10 Automakers

Today, Consumer Reports released the results of its annual car reliability survey, which includes more than 1.4 million vehicles. This is one of the most important publications of the year for consumers interested in a car’s reliability. There were few surprises in terms of which makes are most and least reliable, with Scion maintaining the top spot. Porsche, Saab, Suzuki and Pontiac saw the biggest gains while Lincoln and Mini took the biggest hits. Check out Consumer Reports full report if you’re a subscriber. We list the top 10 most and least reliable automakers below.

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.  

GM Leaves Bankruptcy: Where Do the Brands Stand?

In the tumult of GM’s lightning-quick journey through bankruptcy, you may have lost track of what will happen to all the individual brands. Therefore, here’s a quick and handy guide to where each brand currently stands as the new taxpayer-owned GM emerges from Chapter 11.

Saturn: Purchased by the Penske Automotive Group, which owns NASCAR and IndyCar racing teams, as well as the U.S. distribution arm of the Smart car brand. Saturn’s five models will become the property of Penske but will still be built by GM on a contract basis. According to reports, GM will continue production of the three best-selling Saturn models for the next two years: the Aura, Vue and Outlook. It will discontinue the Sky and Astra. By 2011, GM will stop producing Saturn vehicles, and Penske will have to find a new manufacturer — possibly Renault Samsung Motors of Korea, according to Automotive News.

Saab: Swedish supercar maker Koenigsegg led a consortium to purchase the ailing brand from GM. The deal is contingent on $600 million of financing from the European Investment Bank to be guaranteed by Sweden. The deal is supposed to close sometime in the third quarter of this year, but analysts have questioned whether Saab is big enough to survive regardless. It sold only 93,000 cars last year and has been unprofitable for a long time.

Recall Alert: 2008 Saturn Vue

GM has issued a recall for 44,451 Saturn Vue crossovers from the 2008 model year, according to the National Highway Traffic Safety Administration. The crossover’s body-colored door handles might stick or bind. In this case, a door may not latch.

An unlatched door could come open while driving, putting the occupants in danger and increasing the risk of injury.

Dealers will replace the outside door handles with new chrome handles for free. Owners may contact Saturn at 800-972-8876 or NHTSA at 888-327-4236.

2008|Saturn|Vue

Penske Reaches Deal With GM to Buy Saturn

With Hummer sold off earlier this week, GM has now announced a tentative deal with Roger Penske for the businessman to buy its struggling Saturn brand.

According to Saturn, the deal would save more than 13,000 jobs and keep 350 Saturn dealerships from closing.

Under the deal, GM would continue to make Saturn products — like the Aura, Outlook and Vue — for Penske until 2011.

There’s been no word on whether GM will continue to build the Sky or Astra. The assembly plant for the Sky is due to close this summer, and Saturn didn’t release a 2009 Astra in the U.S.

After 2011, Penske reportedly plans to sell globally sourced vehicles; Automotive News is reporting that Penske will sell Renault Samsung vehicles built in South Korea at Saturn dealerships.

The tentative agreement saves Saturn and its customer-friendly dealers from an almost certain death. GM had previously announced that without a buyer it would close the brand down by the end of this year.

GM, Penske reach tentative deal for Saturn brand (Detroit Free Press) 
Penske plan: Sell Samsung vehicles at Saturn stores (Cnet)

Saturn Vue Two-Mode Hybrid Rated at 28 MPG

Remember the Saturn Vue Two-Mode Hybrid? If you don’t, you’ll never know it, as this Saturn Vue model will never go on sale.

The vehicle was so close to launch that the EPA even tested it: The Vue Two-Mode would have received a 27/30 mpg city/highway, 28 mpg combined rating. That means the ill-fated 255-hp hybrid crossover would have been more fuel-efficient than the 2009 Toyota Highlander Hybrid (though that model is larger and comes equipped with all-wheel drive), but less efficient than the 2009 Ford Escape Hybrid and 2010 Lexus RX 450h.

The Vue Two-Mode Hybrid was part of Saturn’s aggressive hybrid strategy, which was intended to lead to a plug-in hybrid in 2010. The Vue Two-Mode Hybrid was equipped with a powerful V-6 engine and could accelerate from zero to 60 mph in 7.3 seconds and tow up to 3,500 pounds.

The model would have complemented the Vue Hybrid, which has a 172-hp four-cylinder powertrain and, interestingly enough, achieves the same combined EPA rating – 28 mpg – as its erstwhile Two-Mode sibling would have.