Saturn: 2012

The Saturn Distribution Corporation, which was set up as an indirect General Motors subsidiary, sent a letter to customers to warn that it could become an independent marketing and distribution firm which does not build vehicles. GM has only committed to building Saturns through the 2012 model year. Thus, GM could stop making Saturns in 2011 without violating franchise agreements, which were made with Saturn Distribution. The letter also noted that GM will back Saturn warranties.

After being spun off from GM, Saturn would be able to import or rebadge or commission “fuel-efficient, safe, reliable and affordable” vehicles from another maker or from GM itself.

Meanwhile, a study group has started to work on what it would take to spin Saturn off from GM, and where such a company would get its vehicles.

GM’s viability plan covered Saturn through the end of the planned life cycle of its current vehicles, noting the possibility of a spinoff or buyout; if no spinoff or buyout could be arranged, GM said Saturn would be phased out.

Saturn started out to change the rules by which cars were sold, by setting a single price for everyone and not forcing buyers to haggle for a reasonable deal; by providing perks such as friendlier service and money back guarantees; by selling competitive American-made small cars at a profit at a time when that was not done; and by making the cars more buyer-friendly, with dent-resistant outer panels and consideration given to smaller drivers. Over the years, the brand has become more diluted.