A Buyer For Saturn? Maybe.

One of the worst franchises to own in 2009 is a Saturn dealership, thanks to GM’s stated plan to no longer build vehicles for the brand after 2011.  That move plus GM’s likely bankruptcy restructuring has put Saturn dealers in a terrible position of trying to sell cars that not many buyers want. Indeed, as word continues to spread that Saturn is on a short leash, buyers are shopping elsewhere for new cars.

Now word has surfaced that a buyer for the Saturn brand may be stepping forward, an entity known as Telesto Ventures. Made up of private equity investors including people associated with Black Oak Partners LLC, based in Oklahoma City, Telesto is interested in acquiring Saturn from GM perhaps including current dealers among its investors.

Selling Multiple Brands Under One Roof

According to Automotive News which is running the story, Saturn dealers would continue to sell GM products through 2011 and then sell a number of different overseas models thereafter.  The publication suggested that a “Best Buy” model of selling several different brands under one roof would be the goal of Saturn who would likely no longer have Saturn branded cars of its own to sell.

Of course, this move leads to all kinds of speculation as to who might have cars for Saturn. A number of foreign makes would love to set up shop here including vehicles currently built by Chinese firms.  However, any vehicle sold in the US would have to conform to American safety and emission requirements which would make it difficult for a low volume budget brand to make a profit. Currently, nothing from China’s major producers would be roadworthy in the US, but that could change.

Bringing Additional Brands Stateside

Other brands who might be a good fit for Saturn could include Renault and Peugeot (plus Citroen) from France, Skoda from central Europe, India’s Tata Motors and perhaps even Malaysia’s Proton Motors. Should the Fiat-Chrysler deal fail, then Fiat’s brands could also be a candidate for Saturn dealerships. Finally, GM could still be a participant in the new Saturn by importing Opels and/or Vauxhalls from Europe.

Should Telesto Ventures succeed in acquiring Saturn, it would free GM from its dealer obligations and allow it to concentrate on dumping Hummer and Saab next. The Telesto model is a big gamble, but it could pay off especially if the product mix is the right one for Saturn dealers.

Related Reading — Taking Saturn Private Is One Option