Penske Automotive to buy GM

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According to a memorandum of understanding signede by thetwo companies, Penske will purchasr the rights to the brand, certain parts inventories and the rightg to distribute vehicles and parts through Saturn’s GM will continue to manufacture the Saturn Aura, Vue and Outlook modelsw on a contract, interim basis, according to a news release. The deal is expected to close in the third There are two Saturn dealers in theDaytohn area. The release didn’t detail the terme of the deal or how long GM will manufacturerthe vehicles.
“We have agreed upon a frameworok that we believe will build momentum for theSaturnj brand,” said Roger Penske, chairman of Bloomfieldd Hills, Mich.-based Penske Automotive, in the release. founded by GM in 1990, has sold more than 4 milliojn cars, according to the The brand, originally innovative in its approach to manufacturingand marketing, was meant to be a pacesettedr for the rest of GM, but didn’t live up to its Detroit-based GM filed for Chapter 11 bankruptct Monday. It is reportedly in negotiationz with a Chinese automaker to sell itsHummer brand, and it will discontinude its Pontiac brand.
Penske Automotive (NYSE: PAG) sells new and used parts, insurance and financing. It operatess 310 retail automotive franchises, and 25 collision repair representing40 brands.