Windsor to start up; Saturn bought by Penske

Chrysler’s minivan plant, Windsor Assembly, is due to resume production before the end of the month; skilled tradespeople have been asked to show up on June 8, assuming the Indiana appeal is denied.

In other news, the legendary Roger Penske has signed a memo of understanding to buy Saturn, including its 350 dealers, in a deal that could be finished within 2009. Penske plans to start with imported vehicles and move on to domestic production. The deal would save 13,000 jobs. GM will supply vehicles for two years; after that, Saturn would import vehicles and eventually start building its own. The specific supplier of cars has not yet been established; numerous companies have shown interest, according to Penske. Automotive News stated that Renault Samsung Motors would be a likely candidate, with vehicles built in South Korea.

Saturn General Manager Jill Lajdziak will be offered an executive position. Former Chrysler President Tom LaSorda is also likely to find a position; he was a consultant for Penske and is a manufacturing expert.

All American dealers will be offered a new franchise agreement, according to Penske; the number of Canadian dealers to continue has not yet been established.

GM also agreed to sell its Hummer to the Chinese Sichuan Tengzhong Heavy Industrial Machinery Company, but has not yet found a buyer for Saab. Pontiac will be phased out.

Penske already has distribution rights in the United States for the smart car; he owned Detroit Diesel and a racing team, and currently owns a 300-franchise automotive dealership group. He said he wanted to keep the Saturn look, but that aerodynamics might be a factor in future cars.

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