General Motors, Penske outline proposed deal for purchase of Saturn

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General Motors Corp. and Penske Automotive Group today confirmed details of a proposed transaction under which Penske would acquire the Saturn brand. If completed, the deal would save more than 350 dealerships and 13,000 jobs at Saturn and its retailers in the United States, and would preserve the customer-focused Saturn brand.

The proposed transaction is part of GM’s rebuilding efforts outlined in the viability plan that was submitted to the U.S. government earlier this year. Under the terms in the memorandum of understanding, Penske would obtain the rights to the brand as well as certain other Saturn assets. GM would continue production, on a contract basis, of the Saturn Aura, Vue and Outlook.

“This is the combination of two iconic teams: Saturn and Penske,” said Saturn general manager Jill Lajdziak. “GM had the vision to create Saturn and has the desire to see it succeed in the future.”

“Saturn has a passionate customer base and outstanding dealer network,” said Roger Penske, chairman of Penske Automotive Group. “For nearly 20 years Saturn has focused on treating the customer right. We share that philosophy, and we want to build on those strengths.”

Saturn began selling cars in 1990 and has sold more than 4 million vehicles. More than 80 percent of those vehicles are still in operation, according to data from R.L. Polk. Saturn has regularly scored among the industry leaders for non-luxury brands in customer satisfaction surveys.

“There has been a groundswell of support for Saturn, with our retailers and owners urging us to save the brand,” said Lajdziak. “We heard their call loud and clear, and it inspired us as we worked to secure Saturn’s future.”

The transaction is expected to close in the third quarter of this year and is subject to customary closing conditions and regulatory approvals. Financial terms of the agreement will not be disclosed at this time.

GM Reports 156,380 Deliveries in March

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"GM Total Confidence" brings peace of mind in uncertain times with Payment Protection and Vehicle Value Protection

GM total sales up 23 percent compared with February as spring selling season begins

GM's award-winning crossovers drive March sales as Chevrolet Traverse sales of more than 6,500 vehicles helps push GM mid-utility crossover segment sales up 10 percent compared with last March

Pontiac G8 sales nearly triple compared with a year ago

DETROIT - General Motors dealers in the United States delivered 156,380 vehicles in March, down 45 percent compared with a year ago. However, comparing March sales with February, 7 of 8 GM brands saw total sales increases with total volume up 23 percent, or more than 29,000 cars, crossovers and trucks. GM's car sales compared with February were up more than 15,000 vehicles (28 percent), truck sales were up nearly 11,000 vehicles (23 percent), and crossover sales increased more than 3,000 vehicles (12 percent) .

"Sales for GM and the industry showed signs of life at the end of the month compared with January and February. In April, we're stepping up to the plate to get a rally underway with 'GM Total Confidence,' our unprecedented customer protection package," said Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing. "We are encouraged by actions taken by the Federal government to stabilize the industry and stimulate demand. As we continue the reinvention of General Motors, our brands are adding even more world-class, fuel-efficient cars and crossovers to their portfolios. We will also continue to add even more fuel economy technology to our trucks."

When compared with March a year ago, GM total car sales of 68,877 were off 41 percent and total truck sales (including crossovers) of 87,503 were down 47 percent.

Compared with February, total Chevrolet sales were up 25 percent. Specifically, cars were up 28 percent, trucks were up 25 percent and crossovers increased 19 percent. Chevrolet Silverado and GMC Sierra pickups gained strength in March, when compared with February, with retail sales up 17 and 27 percent, respectfully.

Chevrolet's crossover portfolio of HHR, Equinox and Traverse combined for 14,844 total sales in March, a 19 percent increase compared with February. In addition, Malibu has increased retail sales for the first three months this year, with sales up 7 percent compared with the same period a year ago.

"We had a strong close at the end of the month as customers responded to strong incentives, President Obama's positive statements about GM, and the government backing domestic warranties," LaNeve added. "Customers told us they wanted a manufacturer to look out for them, and that's exactly what the 'GM Total Confidence' program does."

A total of 1,612 GM hybrid vehicles were delivered in the month, illustrating the wide range of hybrid product offerings available. GM offers the Chevrolet Malibu, Tahoe and Silverado, GMC Yukon and Sierra, Cadillac Escalade, Saturn Aura and Vue hybrids. So far, in 2009, GM has delivered 3,622 hybrid vehicles.

GM inventories dropped compared with a year ago. At the end of March, only about 765,000 vehicles were in stock, down about 108,000 vehicles (or 12 percent) compared with last year. There were about 332,000 cars and 433,000 trucks (including crossovers) in inventory at the end of March. Inventories were reduced about 15,000 vehicles compared with February.

Certified Used Vehicles

The challenging economic environment had an effect on March 2009 year-over-year GM certified total sales. GM Certified Used Vehicles, Saturn Certified Pre-Owned Vehicles, Cadillac Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER Certified Pre-Owned Vehicles, combined sold 32,788 vehicles.

GM Certified Used Vehicles, the industry's top-selling certified brand, posted March sales of 28,000 vehicles, down 27 percent from March 2008. Saturn Certified Pre-Owned Vehicles sold 974 vehicles, down 6 percent. Cadillac Certified Pre-Owned Vehicles sold 3,143 vehicles, down 5 percent. Saab Certified Pre-Owned Vehicles sold 436 vehicles, down 16 percent. However, one brand showed strong results for the month - HUMMER Certified Pre-Owned Vehicles sold 235 vehicles, up 44 percent.

"Although March sales were down, we're confident more shoppers will seek the quality and value that GM certification offers," said LaNeve. "In uncertain times, Certified Used Vehicles offer consumers the peace of mind that comes with factory backed warranties, such as the 12-month/12,000 mile bumper-to-bumper warranty, reinforcing the durability and reliability of our vehicles."

In March, GM North America produced 170,000 vehicles (73,000 cars and 97,000 trucks). This is down 67,000 vehicles or 28 percent compared with March 2008 when the region produced 237,000 vehicles (124,000 cars and 113,000 trucks). (Production totals include joint venture production of 8,000 vehicles in March 2009 and 20,000 vehicles in March 2008.)

The region's 2009 first-quarter production was 372,000 vehicles (116,000 cars and 256,000 trucks), which is down about 58 percent compared with a year ago. GM North America built 885,000 vehicles (360,000 cars and 525,000 trucks) in the first-quarter of 2008.

The region's 2009 second-quarter production forecast remains at 550,000 vehicles (195,000 cars and 355,000 trucks), which is down about 34 percent compared with a year ago. GM North America built 834,000 vehicles (382,000 cars and 452,000 trucks) in the second-quarter of 2008.

General Motors' Global Vice President of Design to be Awarded Automotive Hall of Fame Distinguished Service Citation

Image via WikipediaEdward T. Welburn, GM's Vice President of Global Design, will receive the Distinguished Service Citation from the Automotive Hall of Fame, January 25, at the National Automobile Dealers Association meeting in New Orleans. With this prestigious Distinguished Service Citation, the Automotive Hall of Fame recognizes an individual's significant contribution to the auto industry.

"I am honored to be receiving this award for doing a job that I enjoy so much,” says Welburn. “I am proud to lead such a creative team that continues designing award-winning cars and trucks that our customers love.”

Welburn was appointed GM vice president, global design, on March 1, 2005. He had been vice president of design, GM North America, since October 1, 2003, when he became only the sixth design leader in GM history. As vice president of global design, Welburn is responsible for interior and exterior design development of all General Motors cars and trucks. He heads a team of over 1,400 men and women operating in 11 design centers in eight countries around the world.

Under his direction, GM has walked away from the North American International Auto Show (NAIAS) in Detroit with the coveted 2007 Car and Truck of the Year awards for the Saturn Aura and Chevrolet Silverado, the 2008 Car of the Year award for the Chevrolet Malibu, the 2008 Motor Trend Car of the Year for Cadillac CTS, and the 2008 Eyes on Design awards for both the CTS-V and CTS Coupe Concept. In addition, AutoWeek named the 2006 Chevrolet Camaro Concept Editors’ Choice Best in Show Award.

Most recently, the Cadillac Converj Concept Car, revealed on January 11, 2009 at the North American International Auto Show won the Eyes on Design Award, AutoWeek’s Best Concept Award as well as the 2009 Detroit News Readers’ Choice Award for Best Concept.

Also under Welburn's leadership, GM designed and developed the revolutionary Chevy Volt, the world's first extended-range electric vehicle whose advanced technology and aerodynamic design enable it to drive up to 40 miles without using a drop of gasoline or producing emissions. The Chevrolet Volt was awarded the North American Specialty Concept Vehicle of the Year 2007 and the Most Significant Concept Vehicle of the Year at the Automotive Hall of Fame, 2007 MY. In addition, the Chevrolet Tahoe Hybrid won the 2008 Green Car of the Year award.

Welburn began his General Motors career in 1972 as an associate designer assigned to the Advanced Design Studios and has held several significant leadership positions within the General Motors Design organization since then.

A native of Philadelphia, Welburn was born on December 14, 1950. He received a bachelor's degree in 1972 from the College of Fine Arts at Howard University in Washington, D.C., where he studied sculpture and product design.

Today, Welburn is General Motors key executive to Howard University and serves on the board of governors at the Cranbrook Institute of Science and on the board of directors of the LeMay Museum.

Welburn has received honors and special recognition from Rainbow PUSH, African Americans on Wheels Magazine, and Black Enterprise magazine. In 2004, he was named the Howard University Alumni of the Year. In May 2008, he received the Man of Excellence Award from the Michigan Chronicle and made the list of The Ebony Power 150: The Most Influential Blacks in America as recognized by Ebony magazine.