I regret to inform you of our family’s decision to permanently close our Saturn Dealership in Toms River, NJ. I want to begin by thanking all of our customers for the tremendous support you have given to our family business and the wonderful team of employees that have worked diligently at Saturn of Toms River over the past two decades. The personal relationships that have developed over the years make this decision that much harder. By now I am sure that you are aware that General Motors has decided to phase out the Saturn brand. As a result, the time has come for us to cease operations out of the Saturn of Toms River facility since we no longer have Saturn vehicles to offer for sale. More so, the decision to allow other GM dealers to perform Saturn warranty repair work has drastically affected our ability to maintain our day-to-day service and parts operations. We tried to go above and beyond in working with our customers by operating as an exclusive service and parts facility for more then 3 months, but the time has come to end this chapter of our business.
I want to assure you that your Saturn vehicle warranty remains in full effect so you will continue to receive service and parts support from GM. While you no longer will see us in our Toms River location, you are still part of the Maguire Automotive Group family, and we invite you to join us at our other dealerships, Windsor Nissan in East Windsor, NJ and Bob Maguire Chevrolet in Bordentown, NJ. In fact, you can still bring your Saturn vehicle to us for warranty repairs since Bob Maguire Chevrolet in Bordentown, New Jersey is a Saturn Authorized Saturn Provider. Your Maguire Loyalty Reward dollars, as always, are redeemable at any of our dealerships locations. You can expect the same high level of service and integrity that has made Saturn of Toms River stand out among all of the brands in the Toms River auto market. Our experienced Saturn technicians will continue to provide you with the best care, honoring all of your warranty and service contract commitments just as they were in Toms River.
I truly hope that we see many of you in Bordentown or East Windsor, as the Saturn stores have meant so much to our organization in developing the way that we do business that has set our stores above the competition. On behalf of everyone that has been involved with Saturn of Toms River, thank you so much for an experience that has truly enriched our lives.
Recently a news was flashed everywhere in the automobile industry that GM’S Saturn and Penske deal is off, the reason being no conditions for an agreement between the two can be found. The news was reported by David Bailey and Bernie Woodall, who writes for Reuters.
GM has asked 350 Saturn dealers to close down their dealership resulting in 13000 US job cuts, which could have been avoided under the deal of Roger Penske.
Auto magnate Roger Penske had been in negotiation with South African Automobile Renault to acquire vehicles for the brand Saturn upon the expiry of GM’s production agreement. Those negotiations were down, ruining the Saturn acquisition by Penske.
Paul Melville, Partner at Grant Thornton corporate advisory and restructuring services, commented that Roger Penske is a very clear and clever man, if the deal with Renault was pursued and was difficult to happen, then the deal was dead.
Penske Automotive lost 8% share trade aftermarket, when the deal broke off news hit the New York Stock Exchange.
Renault confirmed the news that they had been in discussion with Penske Automotive for supplying cars, parts and technology for Saturn, which had not been profitable for GM. Adding further Renault stated that the deal was off, as the conditions for an agreement could not be found.
GM said that the shutting down of production in Michigan is already commenced for the Outlook SUV and in Mexico for the Vue small SUV.
A very disappointing news; GM stated that it will wind out the Saturn business by October 2010, and had already got an agreement signed by the dealers for the approval. It is really a great disappointment for all those employees and dealers who had worked hard to make Saturn a reality.
It is believed that Saturn deal was a pilot plan by GM to give away with their niche brands and focus more on the growing brands like GMC, Chevrolet, Cadillac and Buick variants. The company is already in the process of giving out their stakes in the European Opel brand, Saab and Hummer brands.
Penske had been negotiating for Saturn deal, a contract which ends until 2011, where GM supplying vehicles to Penske and after the contract period expires, leaving it free to tie up with other manufacturers.
In a statement, Penske said that without an agreement, the company cannot determine the risks and uncertainties regarding the availability of future products, and limiting the movement of the company.
This sudden announcement surprised everyone, the Saturn customers as well as dealers.