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Oct 1, 2009 - I Got It, I Got It, I Don't Got It

DETROIT (AP) -- General Motors Co. will shut down Saturn now that a deal with former race car driver and auto dealer magnate Roger Penske has collapsed, marking the end of a brand that was supposed to revolutionize the way small cars were built and sold in America.

The deal with Penske was supposed to be finalized Wednesday. But the unexpected end came when his company, Penske Automotive Group Inc., was unable to find a manufacturer to supply vehicles for the brand's dealerships. GM had agreed to keep building Saturn models like the Aura, Outlook and Vue through at least 2011, but after that, Saturn would have to come up with its own products.

Hopefully the Obama administration doesn't see this as an opportunity to "save" Saturn. While Ford is posting a 23% drop in car sales this year and Toyota is selling 28% less, Saturn is posting a 60% drop. Here's a lesson in economics Mr. President. Sometimes companies make things that consumers don't want to buy. Sometimes those companies do go out of buisness. And no amount of meddling or throwing away our money can change that.

Rumor has it that Penske couldn't find anyone to make buggy whips for him, so he's not going into that business either.

2:55 am | Categories: automotive news, gm Permalink | Alert Administrator

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