“Sun sets on Saturn: GM kills fading star brand - Asbury Park Press” plus 4 more

Sun sets on Saturn: GM kills fading star brand - Asbury Park Press
GM to shut down Saturn after Penske walks away - Daily News Journal
Congress gets a look at Navistar e-truck - Goshen News
Personal Spending Jumps In August Due To Cash For Clunkers Program - RTT News
Sun to set on Saturn vehicles: GM kills brand after deal to sell it ... - New Orleans Times-Picayune

Sun sets on Saturn: GM kills fading star brand - Asbury Park Press

Posted: 01 Oct 2009 07:10 AM PDT

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It takes several years to design new vehicles or engineer foreign vehicles to meet U.S. standards. Penske would risk having no products to sell once the GM contract expired.

The French automaker Renault discussed building cars for Penske but Renault spokeswoman Frederique Le Greves said in an e-mail Thursday that "the conditions for an agreement have not been found." She said the decision was made by the Renault executive board.

Penske's purchase price was never disclosed, and he will not have to pay a termination fee, Pyden said. Penske shares tumbled $1.13, or 5.9 percent, to $18.05 in premarket trading Thursday.

GM will stop making Saturns as soon as possible, but no layoffs are expected, said spokeswoman Sherrie Childers Arb. Saturns are made at plants in Kansas City, Kan.; Delta Township, Mich., near Lansing and Ramos Arizpe, Mexico.

"Those plants produce products for other brands, and we think we can increase volume on those products that will meet market demand," Childers Arb said.

Saturn owners can still go to their dealers for service. They will also be able to go to a certified GM dealer once Saturn dealerships close, GM said.

Stephen Spivey, senior auto analyst for Frost and Sullivan, said he was surprised Penske had no alternative plan for a manufacturer.

"There are lots of car companies in the world. I'm surprised they had all their eggs in one basket," he said, adding that other companies may still be interested in the dealership network.

Penske, who could not be reached for comment, said in a June interview that foreign automakers would be key to making Saturn succeed, but they would have to match GM's quality standards before Saturn's dealer network would distribute their
products.

Bloomfield Hills-based Penske Automotive owns the second-largest U.S. automobile dealer chain. The company also distributes Daimler AG's Smart subcompacts in the U.S. and has race teams in the IndyCar, NASCAR and Grand-Am series.

Galeana said he's heard nothing yet from GM or Saturn, but if the plan is to phase out the brand and cut the products, he'll have to come up with other options.

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GM to shut down Saturn after Penske walks away - Daily News Journal

Posted: 01 Oct 2009 06:56 AM PDT

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GM will stop making Saturns as soon as possible, but no layoffs are expected, said spokeswoman Sherrie Childers Arb.

GM had stopped building the Aura midsize sedan in Kansas City, Kan., and will not resume assembling them. Production of the Outlook large crossover near Lansing, Mich., and the Vue small crossover vehicle in Ramos Arizpe, Mexico, will be phased out as soon as possible, she said.

Those plants produce products for other brands, and we think we can increase volume on those products that will meet market demand, Childers Arb said.

Saturn owners can still go to Saturn dealers for service. They would also be able to go to a certified GM dealer once Saturn dealerships close, GM said.

The news left many of dealers across the country, who had expected the sale to close Wednesday, stunned and fearful of being left with nothing to sell.

Carl Galeana, owner of two Saturn dealerships in suburban Detroit, said hes heard nothing yet from GM or Saturn, but if the plan is to phase out the brand and cut the products, hell have to come up with other options.

Were going to try to put some plan Bs in place at this point.

GM Chairman Roger Smith first unveiled the Saturn brand in November 1983. But the project was slow to develop and the brand did not officially launch until 1990. It featured the iconic tag-line a different kind of car company.

GMs hope was that Saturn would attract younger buyers with smaller, hipper cars to better compete with Japanese imports. It built a new plant in Spring Hill, Tenn., devoted to Saturn vehicles.

Despite a cult-like following that drew thousands to annual reunions in Spring Hill, the brand never made money for GM, although the company has never disclosed how much it invested or lost. The Tennessee factory stopped making Saturns in 2007.

Although it was retooled to build the Chevrolet Traverse large crossover, production of that vehicle will be switched to Delta Township, Mich., near Lansing and the Spring Hill assembly plant will be closed and placed on standby if demand for GM vehicles increases. The fate of parts making operations in Spring Hill was unclear.

As GM focused more on high-profit pickup trucks and SUVs, Saturn began to languish in the late 1990s. Then in 2006, car buyers began to find Saturns new models more appealing. But after a good year in 2007, sales dropped 22 percent last year as the U.S. car market withered. Through August, Saturn sales were down 60 percent from the first eight months of last year.

GM has been trying to sell Saturn since earlier this year as part of its turnaround plan.
I find this hard to believe, said Saturn dealer Galeana. Everyones been saying were right at the goal line.

AP Auto Writer Bree Fowler in New York contributed to this report.

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Congress gets a look at Navistar e-truck - Goshen News

Posted: 01 Oct 2009 06:20 AM PDT

Published: October 01, 2009 09:39 am

Congress gets a look at Navistar e-truck

THE GOSHEN NEWS

WASHINGTON, D.C. — Members of Congress were given a chance Thursday to view an electric vehicle built in Wakarusa with funding from the stimulus plan they approved.

The all-electric commercial truck from Navistar Inc. was built with the help of a $39 million U.S. Department of Energy grant announced by President Obama in August. Navistar intends to build 400 all-electric delivery trucks in 2010 at its facility in Elkhart County and expects within a few years to be producing several thousand vehicles annually as the market grows, according to the company.

"At a time when the economy is struggling, supporting breakthrough technologies like Navistar's all-electric truck will create jobs for our state and help free us from our dependency on energy imports," said Sen. Evan Bayh (D-Ind.) "I was proud to accompany President Obama to Wakarusa, Ind., in August to announce the federal commitment to build this all-electric vehicle in Elkhart County.

"Indiana continues to be a leader in the development and production of advanced technologies that will provide important benefits to the entire nation. Hoosiers have been at the epicenter of today's automotive industry, and this technology gives us an opportunity to be at the forefront of tomorrow's as well."

"The all-electric commercial truck is a concrete example of advanced technology that will be swiftly brought to market with government incentives, just like diesel-hybrid trucks and school buses," said Greg Elliott, senior vice president of Navistar. "We must continue to invest together for the next generation of advanced vehicles with innovative aerodynamic design and greater hybrid and electric market penetration across the nation."

The electric commercial truck is the latest of Navistar's green vehicle advancements. According to company officials, Navistar was a pioneer in diesel hybrids with the International DuraStar truck and the IC Bus CE Series plug-in hybrid school bus.

Navistar officials believe the the all-electric vehicle built in Wakarusa will primarily be used by fleets in congested, urban, light duty applications where stop-and-go driving would otherwise consume a large amount of fuel.

Rep. Mark Souder, who represents Wakarusa in the U.S. House, said, "We have a base of well-skilled employees in northeast Indiana who are anxious to get back to work. As our local economy continues to fight its way through this recession, Navistar Inc.'s new all-electric, lightweight duty truck will create essential jobs.

"In addition to the boost these jobs will bring locally, these trucks represent an important advancement in our on-going efforts toward energy independence," Souder said.

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Personal Spending Jumps In August Due To Cash For Clunkers Program - RTT News

Posted: 01 Oct 2009 06:49 AM PDT

Personal Spending Jumps In August Due To Cash For Clunkers Program
10/1/2009 9:28 AM ET

(RTTNews) - Personal spending showed a notable increase in the month of August, according to a report released by the Commerce Department on Thursday, although the growth was largely due to increased spending on cars due to the government's cash for clunkers program.

The report showed that personal spending rose by 1.3 percent in August following an upwardly revised 0.3 percent increase in July. Economists had expected spending to rise 1.1 percent compared to the 0.2 percent growth originally reported for the previous month.

A 5.3 percent increase in spending on durable goods contributed to the stronger than expected personal spending growth, with the increase in spending on durable goods due largely to the jump in auto sales.

As mentioned above, the increase in auto sales reflected the impact of the federal Car Allowance Rebate System (CARS) program, commonly referred to as "cash for clunkers," which provided credit for customers who purchased a qualifying new, more fuel-efficient car or light truck.

Personal income increased by a much more modest 0.2 percent in August, matching the revised increase for the previous month. Income had been expected to edge up 0.1 percent after the original data showed that income was unchanged in July.

The report showed that disposable personal income, or personal income less personal current taxes, edged up 0.1 percent in August after showing a slight decrease in July.

With the jump in spending far outpacing the modest increase in income, personal saving as a percentage of disposable personal income fell to 3.0 percent in August from 4.0 percent in July.

Excluding price changes, the Commerce Department said spending increased 0.9 percent in August following a 0.2 percent increase in July, while disposable personal income fell 0.2 percent compared to a 0.1 percent drop in the previous month.

Commenting on the data, Peter Boockvar, equity strategist for Miller Tabak, said, "Now with the CARS program over, we can now better measure what the real demand is for goods and the data should be more useful in analyzing in the months ahead."

"The unwelcome backdrop though is that REAL income growth is still flat lining at best, and its savings and income growth that will drive spending looking forward as the access to credit will remain crimped," Boockvar added.

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com

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Sun to set on Saturn vehicles: GM kills brand after deal to sell it ... - New Orleans Times-Picayune

Posted: 01 Oct 2009 05:59 AM PDT

At the brand's 350 remaining dealers around the country, there were high hopes that a deal would be announced for GM to sell the brand to former race car driver and auto industry magnate Roger Penske.

Instead, Penske Automotive Group Inc. announced Wednesday it is walking away from the deal, unable to find a manufacturer to make Saturn cars when GM stops producing models sometime after the end of 2011. GM then announced it would stop making Saturns and soon would close down the brand, just like it did with Oldsmobile in 2004 and soon will do with Pontiac.

The day's events mean an almost certain end to Saturn, a brand that was set up in 1990 to fight growing Japanese imports. Instead of celebrating a rebirth, the announcements sent dealers scrambling for ways to stay open and preserve about 13,000 jobs.

AP Photo/Jae C. HongA Saturn dealership sign is seen in Whittier, Calif., on Wednesday. General Motors Co. will shut down Saturn now that a deal with former race car driver and auto dealer magnate Roger Penske has collapsed, marking the end of a brand that was supposed to revolutionize the way small cars were built and sold in America.

"I find this hard to believe," said Carl Galeana, owner of two Saturn dealerships in suburban Detroit. "Everyone's been saying we're right at the goal line."

Although GM and Penske reached a tentative agreement to sell the brand in June, the deal collapsed Wednesday after Penske was told by an unidentified manufacturer that its board had rejected a deal to make cars for the new Saturn.

"It was a stunning turn of events," said GM spokesman Tom Pyden, who added that most of the details between GM and Penske had been worked out and both sides expected to announce this week that the deal had been closed.

GM had agreed to keep building three Saturn models even beyond 2011, but after that, Penske had to come up with its own products made by another manufacturer.

Penske spokesman Anthony Pordon said there is little if any chance that the talks could be reopened. Without another supplier in place before the deal was signed, Penske couldn't run the risk of taking on Saturn, Pordon said.

It takes several years to design new vehicles or engineer foreign vehicles to meet U.S. standards. Penske would risk having no products to sell once the GM contract expired.

Penske's purchase price was never disclosed, and he will not have to pay a termination fee, Pyden said.

"Those plants produce products for other brands, and we think we can increase volume on those products that will meet market demand," Childers Arb said.

Saturn owners can still go to their dealers for service. They will also be able to go to a certified GM dealer once Saturn dealerships close, GM said.

Stephen Spivey, senior auto analyst for Frost and Sullivan, said he was surprised Penske had no alternative plan for a manufacturer.

"There are lots of car companies in the world. I'm surprised they had all their eggs in one basket," he said, adding that other companies may still be interested in the dealership network.

Galeana said he's heard nothing yet from GM or Saturn, but if the plan is to phase out the brand and cut the products, he'll have to come up with other options.

"I assumed if you're at the goal line, those things would have been figured out," he said Wednesday. "We're going to try to put some plan Bs in place at this point."

Galeana said he's concerned for his employees and still hopes the deal can be resurrected.

"It's tough out there, but we'll keep fighting. That's all we can do."

GM's hope was that Saturn, with its dent-free plastic panels, would attract younger buyers with smaller, hipper cars. It built a new plant in Spring Hill, Tenn., devoted to Saturn vehicles.

Despite a cult-like following that drew thousands to annual reunions in Spring Hill, the brand never made money, although the company has never disclosed how much it invested or lost. The Tennessee factory stopped making Saturns in 2007. Although it was retooled to make Chevrolet crossovers, it's now scheduled to close. A parts plant in Spring Hill will stay open in the short term, but its future was unclear.

As GM focused more on high-profit pickup trucks and SUVs, Saturn began to languish in the late 1990s. Then in 2006, car buyers began to find Saturn's new models more appealing. But after a good year in 2007, sales dropped last year as the U.S. car market withered. Through August, Saturn sales were down 60 percent from the first eight months of last year.

GM has been trying to sell Saturn since earlier this year as part of its turnaround plan.

By KIMBERLY S. JOHNSON and TOM KRISHER, AP Auto Writers
AP Auto Writer Bree Fowler in New York contributed to this report.