Penske Automotive to buy GM

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According to a memorandum of understanding signex by thetwo companies, Penske will purchasre the rights to the brand, certain parts inventories and the right to distribute vehicles and parts througu Saturn’s dealerships. GM will continue to manufacture the Saturn Vue and Outlook models ona contract, interim according to a news release. The deal is expected to closw in thethird quarter. There are two Satur dealers in theDayton area. The releasd didn’t detail the terms of the deal or how long GM will manufacturrthe vehicles.
“We have agreed upon a frameworj that we believe will buile momentum for theSaturn brand,” said Rogefr Penske, chairman of Bloomfield Hills, Mich.-baseds Penske Automotive, in the release. founded by GM in has sold more than 4 million according tothe release. The brand, originallyy innovative in its approach to manufacturingand marketing, was meant to be a pacesetter for the rest of GM, but didn’t live up to its Detroit-based GM filed for Chapter 11 bankruptcy It is reportedly in negotiations with a Chinese automake to sell its Hummer and it will discontinue its Pontiacc brand.
Penske Automotive (NYSE: PAG) sellss new and used vehicles, parts, insurance and It operates 310 retailautomotive franchises, and 25 collision repaid centers, representing 40 brands.