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Reported by: Adam Paluka Friday, Oct 2, 2009 @04:27pm EDT STATE COLLEGE, CENTRE COUNTY - A Penn State Business Professor tells me general motors felt more comfortable with the long term viability of Chevy, Buick, Cadillac, and GMC and decided to keep those brands afloat.
For local dealers like State College Saturn, they are still trying to decide what to do after this big unexpected blow.
Back in February, the General Manager of State College Saturn was optimistic.
“We believe the Saturn retail network will be around for a long time to come. We may be selling some different products, sourced from different manufacturing plants, but we believe Saturn will be here for a long time,” Craig Colweel, General Manager of State College Saturn, said on February 18th. Right now, that optimism is fading. Penske Corporation pulled the plug on deal to buy the brand. “They became very close to getting Renault the French company to manufacture, but they weren't willing to make that commitment, and as a result the deal fell through Penske couldn't find anyone else to manufacture the cars,” Penn State International Business Professor Terrence Guay said Friday. Guay said no one wants to expand their auto manufacturing operations in the current economy, so GM announced on Thursday the brand, its 300 dealerships, and 13,000 employees would be terminated. “Saturn was probably on the edge, but I think GM realized it needed to focus on those divisions that were the strongest, and Saturn just couldn't be one of those.” So what happens to the Saturn dealerships that dot roadways across the country? “Some of them might decide to sell other brands of automobiles instead. I think the vast majority of them will be going out of business, which will again, not be helpful for the overall U.S. economy.” The owners of Saturn of State College did not return our calls for comment about the future of the dealership Friday. Guay also said he thinks this is the last major reshuffling from the Big Three U.S. Automakers, GM, Ford, and Chrysler, for some time. |
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