General Motors to Close Saturn Brand

General Motors Co. has decided to wind down the operations of its Saturn brand, GM’s answer to Japanese automakers that was started 24 years ago. While GM had originally intended to sell Saturn to Penske Automotive Group, the latter pulled out of negotiations with GM and has forced GM to make this decision.

Penske, which operated 310 auto retailers, backed out of the deal because it was concerned that it would not have access to new vehicles in 2011 when GM was expected to stop supplying them. Its inability to sell the Saturn brand has forced GM to adapt its post-bankruptcy plan, which originally involved the auto giant selling off about half of its current brands.

Closing down the Saturn brand will potentially eliminate 13,000 jobs and put an end to 350 dealerships, which will have to wind down their operations by October of next year. According to GM, the decision comes as a huge disappointment to the company, as it spent many months trying to negotiate a better resolution for the brand.

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