Posted on 06/07/2009 8:41:43 AM PDT by Kaslin
Breaking News: An American car company will soon be taken-over by a business person who has expertise in the car industry. And the guy taking over is actually happy about it.
As the bankrupt General Motors corporation seeks to get rid of its non core car brands, Roger Penske, the American race car driver-turned global business magnate, will soon be purchasing Saturn, and taking over the sales, marketing, and distribution of Saturn cars and parts.
Penskes company will not be manufacturing Saturn cars themselves - hes soliciting bids from other companies to design and build the cars for him - but will focus instead on what the Penske group does best. "Our success has been with handling the business that is closest to the customer, Penske stated when the news was announced, so I don't want us to get into our own manufacturing business.."
You may have ignored this news, and it may seem like no big deal now. But consider how this conflicts with the predictions and assumptions made by Washington politicians.
Recall that fateful day (November 18th) back in 2008, when the executives of Ford, G.M., and Chrysler, took their turns before Congress begging for their share of bailout cash. This is about much more than just Detroit," then- G.M. President Rick Wagoner stated, "It's about saving the U.S. economy from a catastrophic collapse."
And it was presumed that catastrophe would necessarily ensue, if our government didnt bailout the car companies. We're concerned about the hundreds of thousands and millions of people who are involved in the automobile industry Senate Majority Leader Harry Reid rationalized 2 days later, we want them to have the jobs.. If our tax dollars werent spent to save these companies from their own mismanagement, then, to follow Senator Reids logic, the companies would simply cease to exist, and millions would be unemployed.
But we all know what happened after the U.S. car execs groveled. Politicians insisted that without their meddling, the entire industry would collapse, and so they went about meddling. The Congress tried to pass a car bailout bill, but it failed. President Bush then used his executive powers to take money from the TARP (bank bailout) funds, and doled-out a few billion to G.M. and Chrysler (Ford had to good sense to say no thanks). In doing this, Bush completely defied the will of the people and the Congress, and kept Chrysler and G.M. afloat just long enough for Obama to get inaugurated.
And one inauguration and two additional car bailouts later, President Obama has now kicked and punched his way to the point of having GM and Chrysler in a headlock, and both companies are at his mercy. With Chrysler, President Obama has drawn law suits for his interfering in the relationship between the company and its secured creditors. Additionally, Chrysler executives are fearful of Obamas coercive efforts to force a Chrysler-Fiat merger, believing that Fiat is in even worse financial health than Chrysler itself. As for G.M., President Obama claims that "our goal is to help GM get back on its feet ... and get out quickly, " but the Administrations behavior suggests that G.M. will be, indeed, government motors for the foreseeable future.
So despite all the without us they will fail predictions from Washington, after some $50 billion of our hard-earned money being handed-over, and now with two of the nations automakers in the hands of one individual - Barack Obama - the companies are still failing. Yet in the midst of the doom and gloom, and despite the predictions of President Obama, Senator Harry Reid and other congressional Democrats, an American business owner and entrepreneur sees opportunity in the car industry and is excited to jump-in.
Roger Penske isnt asking for a bailout. He isnt even asking for special government-subsidized financing for his purchase. He wants Saturn, a product line deemed to be one of the least attractive on the G.M. roster, because he believes that he can make money with it, and hes willing to risk his money and his good reputation to make it happen. This (Saturn) is still a good business Penske stated, and were going to make it better. In the process, it is believed that Penskes acquisition will in the short-run save some 13,000 American jobs, and eventually create more.
For some, its hard to believe. But all this benefit is being derived- - for Penske, for his associates, for the can industry and for the global economy - without the expenditure of more of our tax dollars, and without President Obama coercing it. Its happening at the hands of free people, freely choosing to take risks, to innovate, to create, and to produce.
This is the reality of American-styled Capitalism at work. Im quite certain that most members of Congress lost sight of this reality long ago, and I suspect that President Obama knows nothing about it at all.
But it is a reality that the American citizenry must never forget.
My wife is 4’ 11”. No problem reaching the pedals in her Chevy Tahoe. How’s that? Electrically adjustable pedals.
has reached a preliminary deal to sell its Saturn distribution network to Penske Automotive Group.
This was per the wall street journal. Nothing about buying Saturn, manufacturing. I see Chinese cars with Saturn label's. LOL, So I would not bet the farm on this deal!!!
DO they come 4X4 standard with an extended cap ?....I’ll have to look into that one. Mine is over ten year old now. 100,000+, need to look for another work-horse no frills.
Exactly. I will never buy a government car. I'd rather have one put together with parts from a junkyard first.
Saturn is already importing other countries’ cars and selling them as their own. Half of their lineup is Opels from Europe, the other half have things like Honda engines.
Korean, actually. Word is that he’s going to bring in cars made by Renault-Samsung of Korea - which are basically Nissans that aren’t sold in the US.
He could do a lot worse than that.
Congratulations on your support for Obama and the Unions then, Democrat.
It’s Saturn. Most of their stuff is made somewhere else already.
I hope they change the Saturn name, to rid all ties back to GM. Besides I have never liked the name.
My boss has owned 3. He has nothing but glowing things to say about them.
Penske doesn’t own NASCAR, but he sits on the board of directors of their sister company International Speedway Corporation (ISC). NASCAR is owned by the France family, who also happens to own a large portion of ISC. He was given a seat on ISC’s board a few years ago as part of a deal where ISC bought a couple of the tracks he owned.
I hope he outsells government motors along with improving Saturn.
A neighbor who works for a 'Custom' Used Car Dealer comes home with all kinds of top end pricey cars. One day he comes home with a Saturn 'Sky' Roadster. When I first saw it I thought is was another high end European roadster, like a Beemer or Benz. (right now he has a $100,000+ Black Mercedes-Benz SL Roadster on his driveway)
Anyway, after checking out the Saturn Sky online I found it has a 2.0L, 260 HP Turbo engine and does 0-60 in 5.5 seconds, and is only $28,265 MSRP (the EPA est is 28 MPG hwy w/ a manual tranny).
That ROCKS! And a car like that is made for Roger Penske to 'toy with' (watch out Corvette) and build the Saturn line up from there.
And here's another reasoon I'd never buy a Ford:
Local TV Station Catches UAW Workers Boozing Instead of Working
http://www.freerepublic.com/focus/f-news/2151596/postsThis is an FR thread from December 19, 2008 about Ford workers at their Truck Tranny Plant. The linked video in the article is 'no longer available' but is prolly on YouTube if you search.
I agree with you about Penske acquiring Saturn. It’s nothing but good for both.
I don’t agree with your opinion of Saturn though. From what I’ve observed, the vast market of single women who feel very inadequate walking into an auto dealership feel more confident with Saturn because the Saturn dealers have the reputation of treating customers fairly and gently and fixing their cars right.
The brand’s strength is that reputation. I think Roger Penske knows that and that it’s a big asset.
No, to a family member of the Ford family.
Same union makes Saturns and Fords ... GM and Chrysler weren’t the problem, its the unions that broke the system, then walked off with the spoils. I think Saturn/Penske is super ... but talk to me about the union contract. I don’t intend to spend “more” for a USA built car to help a bunch of 50 year olds retire in luxury.
We he men Silverado drivers don’t have much empathy for you folks, sorry.
Ford took NO bailout money.
Saturn and Ford have not taken bailout money!
Agreed with the unions. GM is successful overseas. GM makes profits building small “B” cars in India. Folks graduate from Michigan State and GM assigns them overseas. These State grads are successful overseas, but get dumb upon return to USA;yeah right!!!
Toyota, Honda etc are successful in the US.
Was/is/and always will be the fault of the UAW
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