In order to hike up the sales, General Motors Company is offering higher incentives to its dealers. According to Wall Street Journal, General Motors is trying to dump the leftover stock from Pontiac and Saturn manufacturers in the market in order to increase the December sales of the particular car manufacturing brands. Wall Street Journal has also states that, General Motors has sent letter to its dealers stating that they are ready to pay $7000, every time a car manufactured by Saturn or Pontiac’s possession is transferred from their stock to that of rental-vehicle or service vehicle. These cars would be sold on second hand basis since these dealers are considered as owners of the car, hence the discounts availed on these cars will be high. This offer is going to last until the 4th of January since it is the last day for the General Motor Company to hike up their December car sales. General Motors will be booking the sales as fleet deliveries General Motors is planning to quit on Pontiac and Saturn and focus its attention on Hummers instead. General Motors’s contract to sell Saturn’s cars had collapsed in September, since then it has also pulled out of the contract to sell Opel by its European Unit. Currently its consignment of Hummers to a Chinese firm has been deferred and their deal with Saab cars is on a closure. This information has been provided by Reuters, but they were unable to get a comment from General Motors since it was past the US business hours.
Chevrolet and Autonet Mobile have proclaimed that they will be turning Chevrolet SUVs and Trucks into hot-spots for Wi-Fi connection. One can avail the services by getting a device installed by a dealer. This will ensure that one can access the net on their laptops, cell phones, etc, even on the move. These devices can only be fitted into seven models of Chevrolets, i.e. Tahoe, Suburban, Silverado, Express, Avalanche, Traverse and Equinox. Installation will cost $200 and monthly charges for the service will be $29, along with some unspecified costs. The internet cannot only be accessed from within, but also at a radius of 150 feet. Wi-Fi is convenient when one has to spend a lot of time on the road, such as for camping or tripping, etc.
GM had asked all their Saturn dealers to wind up the dealership network and confirmed the news that there is no deal taking place between Penske Automotive.
Penske in his statement cleared that the deal is off as Renault’s board of partner rejected the deal for supplying spare parts for the Saturn car. This could lead to a potential risk and uncertainty as to who will make sure the availability of future products, leaving no room to move ahead.
The Saturn deal was agreed upon by GM and Penske in view of automaker’s bankruptcy filing in the month of June. In July, GM came out with a court protection and stated that the agreement with Penske is aimed at preserving dealerships and avoiding job cuts.
But with the non availability of permission from Renault, the future is not secure for the availability of products, hence the deal is called off by Roger Penske and GM.
GM will continue the process of winding up through October 2010 with an approved agreement between the dealers. The company also informed that customers will be able to buy new cars and service their vehicles at the Saturn dealers until the process is completed. After the process of through, customers can service their Saturn at other dealership agencies.
Saturn the car created by Roger Smith, Chairman, GM to show the Japanese that US can beat them in small car soil. In 1990 Saturn found a strong market and positioned itself in a different small car segment. And in 1994, the sales peaked up heavily.
But with the financial turmoil, Saturn is now losing market and is on the verge of losing its identity.
Roger Penske, 72, had proposed to take up the challenge and keep the brand alive, by asking for retailing rights from GM and later on produce the same at his own setup. Things were moving on track, but with non availability of spare parts and an exclusive agreement of Renault with GM, made it difficult for Penske to keep the balls rolling and the deal comes to an end in a very surprising manner.
GM had agreed Penske to continue their support for 3 Saturn models – Aura, Vue and Outlook for another 2 more years. Then, Penske needs to put together a new portfolio for products.
GM as per their plan had started closing their units in Mexico, Michigan for Vue and Outlook respectively.
Penske is known for his revival strategy and had already rescued GM’s Detroit Diesel Corp 2 decades ago and now its Saturn.
Dealers and employees are hopeful that the deal revives for Saturn and the business takes place. In a comment made by John Pitre, Genera Manager Saturn Bakersfield, “If Penske didn’t think it would work, then it won’t work.
With Roger Penske’s pending purchase of Saturn from GM, it could be the beginning of the biggest change in how vehicles are sold. When the purchase is made final Penske will be able to shop around globally for the lowest cost auto maker to build his vehicles quickly. Fast turnarounds and lower costs could keep it profitable in brutal times. “What if we’re first? What if we win this race?” Marcy Maguire of Saturn of Bordentown and Saturn of Toms River said in response to low-cost, fuel-efficient vehicles. Marcy Maguire, a director of the National Automobile Dealers Association, foresees “fresh, distinctive” Saturns “from whatever area of the world” that can build to suit. “We live in a global community and buyers don’t seem to care who makes a car if it suits their needs. It truly is revolutionary.”
It must be sweet for Ghosn who championed the GT-R when Nissan was in dire financial trouble. And trumping Chevrolet‘s double-barrel announcements last week regarding the Corvette ZR1‘s outrageous 638-hp output and its 205-mph top speed, doesn’t hurt either.
But wait, didn’t we quote Corvette Chief Engineer Tadge Juechter as saying that the ZR1 “will be able to take the production-car track record at any racetrack”? Yes, we did. What we didn’t mention was that in the same interview, Juechter said that, while the company didn’t yet have a full-production ZR1 to test at Nürburgring’s old track, he confidently predicted the super-Vette would do the deed in “Seven minutes, twenty-something seconds.”
Hey, is that a gauntlet we see there on the ground? Anyone care to pick that up? (We’re looking directly at you, Chevy.)