For Sale: Saturn – But who will buy it?

GM announced today that “a number of potential buyers have surfaced and expressed interest in the Saturn brand and retailer network” (GM Press Release). The billion dollar question is, who will buy it?
Saturn, a division of GM since it was founded in 1985, has branded themselves as a “different kind of car company.” Ten years after inception, Saturn produced its 1,000,000th car. Four years later, it produced its 2,000,000th car. View a history of Saturn here.

Close to 25 years after Saturn was founded, it is reported that this division has never been profitable for GM – except maybe for one year according to this report.

So who will buy a company that has shown to be a drag on the behemoth GM? A private equity firm? It has been reported that the private equity firm, Black Oak Partners LLC may be interested. That approach didn’t work so well for Chrysler when Cerberus Capital Management purchased Chrysler from then DaimlerChrysler (now Daimler AG) in 2007. Will the United States government be bailing out Saturn from an equity firm deal gone bad in a few years?

What do you think? Can Saturn become a viable stand alone company?

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Auto Upkeep 4th Edition

Michael Gray

Mike has roots in the automotive service industry. He began diagnosing and fixing cars at a young age in his family’s service station. He has worked in automotive parts supply stores, towing companies, and service facilities. After graduating from St. Cloud State University (MN) with a Bachelor’s degree, he implemented and taught a basic car care program at the high school level. During work on his Master’s degree at Illinois State University (IL), he was a curriculum specialist on a National Science Foundation project where he co-authored ten integrated mathematics, science, and technology books designed for team teaching. Mike has also supervised teachers in Career and Technology Education as a school system administrator.

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