The End of Saturn

Beginning as the brand to compete with import cars, Saturn was developed by GM in 1985. Saturn will have an official end in 2010, after the last of the 371 dealerships are closed down completely. This comes with a loss of more than 13,000 jobs. There are currently 12,000 Saturns for sale and with production being halted, no more are expected to be made. These Saturns should be sold within four or five months.

Compared to sales in September 2008, sales for 2009 were down a hefty 84 percent. Dealerships will be paid anywhere from $100,000 to 1 million dollars in closing. Carolyn Markey, a GM spokesperson, said, "Consistent with that monetary agreement, all Saturn dealerships will get the same consideration. They will get somewhere between $100,000 and $1 million ... depending upon their circumstances."

Most are attempting to shut down and sell now, though Saturn dealerships are normally built smaller than most other auto dealers. This may end up being another problem as dealers all around the country are looking to get rid of their properties as soon as possible, while most other auto dealerships won’t want the smaller lots and buildings. Most Saturn dealerships are on lots from about three to six acres of land - not enough for Ford, Chevrolet, Dodge or most other auto dealers to keep a reasonably sized inventory.

Saturn was almost saved by Roger Penske. He had attempted to purchase Saturn and make it an independent company, becoming a distributor and retailer and obtaining vehicles through contracts from other auto makers. In the end, an agreement on a deal could not be reached and Penske pulled out of the deal. GM Treasurer Walter Borst said that GM will now “move quickly to wind down Saturn” unless some kind of deal miraculously appears.

Saturn was popular for a number of reasons, one being the company’s policy of “no-haggle pricing.” Prices for the cars were set at reasonable for both the dealer and the buyer, with no wiggle room. After purchasing a new Saturn, employees would cheer as you drove off the lot in your new vehicle. Dealerships were few and far between since the franchises were spread out. This made it easier for the dealers to concentrate on their service and customers without worrying about their buyers going to a nearby dealership.

Saturn had been losing money and interest in the past few years. It’s even been rumored that the company never really turned a profit after including corporate overhead. Once the government stepped into the mix with an automotive bailout, GM didn’t have much of a choice but to cut Saturn out completely.

Surprisingly, the end comes as a shock to many Saturn owners. People loyal to the brand love it and are still hoping for some sort of miracle to save the company. Most are worried about warranties, parts and service on their current Saturns. GM has stated that all current warranties will be upheld and that service and parts will be provided by certified GM dealers.