NEW YORK, Sep. 30, 2009 (Kyodo News International) -- General Motors Co. said Wednesday it has given up a plan to sell its Saturn brand to Penske Automotive Group (NYSE:PAG) , the second largest auto dealership in the United States.
Penske also said it has terminated talks with the struggling Big Three U.S. maker on the matter as it was unable to conclude an agreement with ''another manufacturer'' over the future supplying of vehicles to be distributed under the Saturn brand.
GM and Penske said in June that they had struck a tentative deal for the sales transaction of the Saturn brand.
But as their negotiations collapsed, the Saturn brand is likely to disappear from dealerships eventually, just as with the GM's Pontiac brand.
According to U.S. media reports, Penske, led by racing legend Roger Penske, failed to reach agreement with French automaker Renault SA's South Korean subsidiary over the supply of vehicles for the Saturn after GM ends its production of the brand by 2012.
If the deal had gone ahead as planned, Penske would have taken over Saturn's more than 350 dealerships in the United States run by GM for the compact car, saving about 13,000 jobs.
The move was part of GM's efforts toward a coming up with a sweeping restructuring plan aimed at unloading unprofitable operations, including selling or disposing of some brands while focusing on the Chevrolet, Cadillac, GMC and Buick brands.
