http://www.thatsracin.com/116/story/19438.html

Can someone explain this one? Was Penske hoping someone was hoping another mfg. was coming in and supply labor and mfg. a brand in competition with their own and not pay for it?

jc4321 - 30 September 2009 05:10 PM

http://www.thatsracin.com/116/story/19438.html

Can someone explain this one? Was Penske hoping someone was hoping another mfg. was coming in and supply labor and mfg. a brand in competition with their own and not pay for it?

The explanation is in the link provided. He had a deal pending with another mfg and it fell through. Why would you think he expected to have the cars built for nothing?

I'd be pissed after thinking Penske saved my job but in the end really didn't. 13k more on the unemployment line. I didn't think this deal would happen with just Penske alone because while Roger does have a vast dealer network he didn't have that kind of money. Reports coming out had it sounding like the main issue was he couldn't come to terms with the manufacturers and suppliers he wanted to use but
a deal he had with Renault fell apart. It sounded like he was just gonna have a company build some kind of car and rebadge it as a Saturn not really helping the Saturn workers.

http://wot.motortrend.com/6590091/auto-news/penske-automotive-kills-saturn-buyout-plan-over-vehicle-supply/index.html


No Saturn to run Cup, or anything else..ever.

"Penske Automotive Group negotiated the terms and conditions of an agreement with another manufacturer; however, that agreement was rejected by that manufacturer's board of directors," Penske's release reads. "Without that agreement, the company has determined that the risks and uncertainties related to the availability of future products prohibit the company from moving forward with this transaction."

Frankly, I never saw it happening.

The business model just never made sense to me. The market needs fewer brands anyway, and I think people have become weary of badge engineering - whether it's a Pontiac-Chevy or a Penske-Opel (or whatever)

TeamRMP - 30 September 2009 06:04 PM

I'd be pissed after thinking Penske saved my job but in the end really didn't. 13k more on the unemployment line. I didn't think this deal would happen with just Penske alone because while Roger does have a vast dealer network he didn't have that kind of money. Reports coming out had it sounding like the main issue was he couldn't come to terms with the manufacturers and suppliers he wanted to use but
a deal he had with Renault fell apart. It sounded like he was just gonna have a company build some kind of car and rebadge it as a Saturn not really helping the Saturn workers.

No smart businessman spends his own money on a new business venture if they can help it. They spend investor's money, and investors are something Penske has never had a shortage of, thanks to his long record of success. He would have had all the money he needed. Apparently his proposed deal with GM did not include the Saturn factory, for whatever reason. That would leave him no option but to have another manufacturer build the cars until Saturn was in a position to build a new factory. As far as the deal not helping the 13k workers, I would say you are wrong. The factory doesn't employ 13k workers. Probably most of them worked for the dealers and their jobs would have been saved, no matter who built the cars. I visited the Detroit Diesel factory in '98, when Penske still owned the company. The workers on the floor and in the offices litterally loved the guy. You would have thought he could walk on water. They all said the same thing: Roger cares about the working stiff. I spent most of today with reps from Detroit Diesel and Allison Transmissions discussing new equipment. One of the fellows had worked directly for Penske in the '90's and knew him well. We spent some time talking about the Saturn deal. Penske is no longer involved in those 2 companies, but still, there was nothing but respect from these guys for him.

Thats very true, most of the 13k employees would have been at the dealers...13k jobs may not seem like a lot, but tell it to those people, this is sad.