Penske to buy Saturn from GM

UPDATE This rumor is upgraded to 'strong' today. General Motors has agreed to sell its Saturn brand to Roger Penske, a major auto dealer, and a deal is expected to be announced on Friday, a person with direct knowledge of the matter said.

The move is the latest by G.M. to sell off assets as it reorganizes itself in bankruptcy. Saturn, which was part of G.M.’s bankruptcy filing on Monday, had drawn 16 bidders over a months-long sales process, G.M. said earlier this week.

Roger Penske, expanding his empire

Under the terms of the deal, Mr. Penske, a former race car driver whose Penske Automotive Group is one of the largest dealerships in the country, will initially buy Saturn vehicles from G.M. But he is expected to eventually buy cars from other carmakers like Renault, through its Samsung Motors Unit in Korea.

Mr. Penske’s company, which owns 310 franchises around the world, already serves as the sole distributor of Daimler’s Smart line of small cars.

05/05/09 Two new suitors, including Detroit auto tycoon Roger Penske, have surfaced for General Motors Corp.'s endangered Saturn brand, according to sources familiar with negotiations.

Penske is the highly successful head of Bloomfield Hills-based Penske Automotive Group, Inc., which operates more than 300 franchises in the United States and internationally, selling 40 different brands. The billionaire Detroit booster, who oversaw the city's Super Bowl XL preparation, has accomplished almost everything in the auto industry, from racing cars to building engines as owner of Detroit Diesel Corp. to snagging exclusive U.S. distribution rights for the iconic Smart minicar. But buying a brand and building vehicles would pose a new challenge.

"We look at things all the time," said Tony Pordon, a spokesman for Penske Automotive Group. "We have been offered an opportunity to look at Saturn. It's very premature to assume anything will be done. I can confirm to you that we are looking at it." More at Detroit News