Penske’s Plans for Saturn

Roger Penske (pictured) is a man of many hats. Most people in the automotive world know him for his racing heritage that includes ownership of NASCAR and IndyCar race teams, while non-automotive buffs may recognize his name from big yellow commercial trucks. His most recent venture was the acquisition of the Saturn Corporation from General Motors to keep the 24-year-old automaker alive as well as maintain the jobs of its dealership employees. Since the June 5, 2009 announcement that Penske Automotive Group had purchased Saturn, many in the industry wonder what direction he will take to make the brand successful and profitable – something GM was never able to do.

GM will continue building the Saturn Outlook and non-hybrid versions of the Saturn Vue and Saturn Aura for Saturn until 2011, while the Sky roadster and Astra compact hatchback will no longer be available in the U.S. The biggest question for the future of Saturn past GM then becomes what vehicles it will sell in showrooms. Penske, currently the sole provider of smart fortwos in the U.S., will most likely bring vehicles to Saturn from other manufacturers not available in North America such as Renault or even up and coming Chinese automakers. Like Chrysler’s new partnership with Fiat, there will be a great opportunity for Penske’s Saturn to introduce unique, fuel-efficient vehicles into the U.S. market.

Many in the industry, including once nervous Saturn retailers, are excited about the future of Saturn. In addition to having a trio of quality vehicles on its showroom through the next two years, Saturn will be able to import low-cost vehicles from around the world. Many Chinese automakers have been trying to find a way to break into the North American market for some time now, and Saturn may provide that opportunity. Of course, many of the cars will have to pass the strict rules and regulations of both the National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency (EPA). Besides Chinese automakers, South Korean-based Renault Samsung Motors is also speculated as a possible Saturn importer.

Regardless of what vehicles Saturn imports, the cars have the potential to be very competitive in a North American market that has yet to fully adapt to building smaller cars. Other than the smart fortwo and a handful of compact hatchbacks, there are relatively few small, fuel-efficient models for sale in the U.S. from any automaker. Many automakers doing business outside the U.S. already produce cars that could gain popularity as gasoline prices are expected to continue in price in the future. Vehicles that are available for sale in Europe would make even more sense since safety and emissions standards are similar to ours.

Another Penske Automotive Group may be planning the future of Saturn is by entering it into NASCAR. It may seem highly unlikely for a Saturn Aura to be running around the track, but this would be a great way to increase the brand’s popularity. With Penske at the helm, he could easily transfer his three Sprint Cup teams, currently running in Dodge bodies, over to Saturn bodies. The only problem with this speculation is the lack of a Saturn V-8 that could be approved for use in NASCAR. It sure would make an interesting sight seeing an Aura running around Daytona International Speedway at close to 200 miles per hour!

However Penske is planning to revitalize Saturn, he will have to rely solely on outside vendors to produce vehicles. Despite being sold Saturn and all of its assets, GM did not include the production facilities that currently build the brand’s vehicles into the sale. Although the terms of the transaction were never announced, Penske’s rescue of Saturn is said to have saved approximately 350 dealerships and close to 13,000 jobs.