Saturn's Metamorphosis News **GM's hot brand of the year (page 4)**
01-12-2004, 07:20 PM
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Originally posted by chris3240929
Let's see what he does...
Let's see what he does...
http://www.acura-cl.com/forums/showt...hreadid=125506
01-15-2004, 07:58 AM
#47
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Originally posted by Zapata
blah, underpowerd, crappy quality......styling is fine.......
blah, underpowerd, crappy quality......styling is fine.......
01-15-2004, 09:37 AM
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Originally posted by 1killercls
actually the Saturn SUV has a 250 hp HONDA v6 in it.
actually the Saturn SUV has a 250 hp HONDA v6 in it.
a good freind of mine is a saturn mechanic, you are exactly right, the Saturn Vue (the SUV) is now using the same motor and tranny as the Acura MDX. the Vue is also available with a CVT tranny.
the supercharged saturn ion coupe is also on its way to showrooms, that will surely stir up some intrest.
01-18-2004, 05:23 PM
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Did you smell that? Oh. That was Saturn.
Kill the line. I see no reason for it to be there. The first SC1 okay looking, after that it was all bad. I can't speak to reliability....I have heard good and bad just like Honda or Acura. Can someone explaine the advantage of an Ion over a Sunfire or Cavalier? Or the advantage of a LS200 (300) over a Grand AM? Worthless.
Kill the line. I see no reason for it to be there. The first SC1 okay looking, after that it was all bad. I can't speak to reliability....I have heard good and bad just like Honda or Acura. Can someone explaine the advantage of an Ion over a Sunfire or Cavalier? Or the advantage of a LS200 (300) over a Grand AM? Worthless.
01-24-2004, 07:36 PM
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Changes at Saturn mean the end of 'a different kind of company'
Saturday, January 24, 2004
Changes at Saturn mean the end of 'a different kind of company'
By Scott Reeves / Associated Press
NASHVILLE, Tenn. -- Saturn, once billed as "a different kind of company" making "a different kind of car," is losing its distinct identity and becoming just another division at General Motors Corp.
GM is forcing Saturn to adopt common practices for design, production and labor -- a change that had to happen, analysts say, to cut costs and make Saturn competitive.
But it means the end of Saturn as an separate entity, an experiment launched in 1990 to compete with low-cost imports like Toyota, Honda and Nissan.
All Saturn cars were made in the small town of Spring Hill, about 30 miles south of Nashville, and more importantly, about 500 miles away from Detroit.
The company had its own managers who reported to the Saturn executive board rather than to GM, and the United Auto Workers signed a separate contract with GM to create a cooperative environment between labor and management.
The cars -- there was initially only one model -- were offered at a fixed price, with no haggling. People loved the Saturn experience, and the company developed a reputation for customer loyalty that rivaled higher-priced brands.
Cris Thomas, who runs the computers at a private school in Cambridge, Mass., is on his third Saturn and has put down a deposit on the new Ion sedan without even a test drive.
"I've got to have the Ion," Thomas said. "I'm attracted to the vehicle. I like the looks of the older S series, especially when compared with Honda and Toyota. I think Saturn is more reliable than the Japanese cars."
But after a promising start, Saturn let the car's look and technology get stale. New models were finally introduced to mixed results, and the company has plans for more.
Production of the new Relay minivan will begin next fall, but not in Spring Hill. Instead, it will be assembled at GM's plant in Doraville, Ga., using a standard GM frame.
Another sign of change is Saturn's new contract with the United Auto Workers, which was approved last month.
"It's a major stride for management and the union," said Laurie Felax, vice president of Harbour & Associates in Troy, Mich., who tracks the auto industry. "Saturn's plant in Tennessee needs to be as competitive as any in the world -- that's how you secure jobs."
The contract calls for workers to receive a $3,000 bonus now and a 3 percent performance bonus to be paid next year, in addition to a 2 percent raise in 2005 and a 3 percent raise in 2006.
But the union also agreed to a transition to the national labor agreement with GM that would allow the company to lay off employees for the first time in its history. Workers approved the contract 2,953 to 317.
"I believe the contract will maintain our strength and the future of Saturn," said Rick Martinez, president of UAW Local 1853 in Spring Hill. "It allows GM to be confident in our structure -- it's not dissimilar how they operate other GM facilities."
As part of the deal, General Motors promised to invest $90 million in Saturn for capital projects to help boost faltering product lines.
"They committed to seek significant improvements at the Spring Hill facility that will allow us to build multiple product lines, including non-Saturn products," Martinez said. "We can built other cars if that's what it takes to keep membership secure."
GM wants to create a global network of flexible manufacturing plants based on common practices to let the automaker shift production of different lines and models to various factories as needed.
To survive, Saturn had to become part of this strategy. And for the union, it was adapt or die.
"We didn't want to put all our eggs in one basket," Martinez said. "I don't think Saturn is being folded into another brand. I think we'll continue as a unique facility that allows union participation, but it won't be the 50-50 partnership we had before."
Some believe Saturn should be folded into GM's Chevrolet line and simply disappear. Last year, Saturn represented about 6 percent of the GM vehicles sold in the United States, and it has made money in only one of the last 13 years.
But Felax, the analyst from Harbour & Associates, rejects arguments that GM should abandon Saturn.
"GM has just as much ability to be competitive in this market as anyone," she said. "GM has made tremendous strides in improving operations and reducing cost. I would never back out of this market."
Sue Holmgren, spokeswoman for Saturn in Detroit, said the company is being repositioned -- not being prepared for the chopping block.
"Saturn's future is secure," she said. "General Motors has supported Saturn. We have new products coming on line in the next 36 months ... I wouldn't say this signals the end of the partnership at Spring Hill."
On the Net:
http://www.saturn.com
http://www.gm.com
10-18-2004, 11:05 AM
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Saturn looks to Opel for style, aims to sell 400,000 vehicles a year by 2007 - - JASON STEIN | Automotive News - - Source: Autoweek
DETROIT -- Saturn -- once dubbed the GM division that sells cars to people who don't like cars -- is creating a new look that draws heavily on Opel.
Saturn Corp. executives say the division will position itself upscale of Chevrolet and Pontiac, occupying the niche once held by Oldsmobile.
The division will unveil the look in January at the Detroit auto show, where it will introduce a rear-wheel-drive roadster and a concept version of a front-wheel-drive mid-sized sedan.
Both vehicles will enter production over the next 24 months. A mid-sized sport wagon will follow in the third quarter of 2006, says Saturn General Manager Jill Lajdziak.
With new products on the way, the division hopes to increase its sales volume from 271,157 units last year to more than 400,000 units annually by 2007. Saturn also plans to add 80 dealerships.
After nearly 15 years of lagging sales and uninspiring product, Saturn has begun a massive makeover. Internally, Saturn is calling the plan a "revitalization" of the brand, an investment that one GM executive recently described as costing "a couple billion."
But there's a distinct feeling that Saturn has been here before. When it was launched in 1990, GM executives believed Saturn could sell one-half million units a year. But in its best year, 1994, the division sold only 286,003 vehicles.
In an effort to revive the brand, Saturn introduced the Ion compact car, the Vue SUV and the L-series sedan. They flopped. For the first nine months of this year, Saturn sales totaled 170,938 units. That's down 21.1 percent from the year-ago period.
Worldwide collaboration
The new round of product development began 18 months ago at seven of GM's 11 design houses worldwide. Saturn's design studios in Los Angeles and Warren, Mich., collaborated with a Vauxhall design house in the United Kingdom and GM Europe studios in Trollhattan, Sweden, and Russelsheim, Germany.
But GM insiders say Opel's designers and its styling had the most influence on Saturn's new interiors and exteriors.
"A lot of our sharing, from a designer standpoint, was done with Opel in Germany," says Saturn designer Clay Dean. "Opel led the charge."
As a result, Lajdziak says the future products will show a new face of Saturn - one that will be consistent in future Saturn vehicles.
"Your design character has to be pulled through your portfolio, and I don't think over the years we've done that," Lajdziak says.
More dealers
Saturn's dealer network will change as well. Lajdziak says Saturn will add 80 dealerships to its current group of 454 locations. She says Saturn will increase the brand's presence in major markets as well as in smaller places such as Cedar Rapids, Iowa.
Saturn has drawn on Opel before. In 1999, Saturn sold a Vectra derivative as a mid-sized L-series sedan and station wagon. But the styling was generic, and consumers yawned.
GM Vice Chairman Robert Lutz says Saturn suffered under the weight of its own mission. "The idea behind the product was that it would be used as a tool," Lutz says. "It was anonymous and faceless. That's totally wrong. It's all about the car."
Lutz also says Saturn relied too much on its customer-friendly dealerships.
"The selling experience lasts one day, but the product experience has to last the other 364 days," Lutz says. "I started to ask, 'Why can't we have it both ways?' Let's have wonderful dealers and have consumers who are enthusiastic about the product."
Dealers who have seen the plan have welcomed it. But, then, there have been other plans before.
"We needed new products five or 10 years ago," says Bill Malvin, a manager at Saturn of Bloomington in Bloomington, Minn., where sales are down as much as 15 percent this year. "We've had a lot of stops and starts over the last decade, and the Saturn way is kind of, 'OK, we're doing this.' But it never quite happens."
Says Ron MacEachern, general manager of five Michigan Saturn stores: "It has been tough. When you look at what we sell, sometimes you wonder how we pulled a rabbit out of our hat. But I think we can see the light at the end of the tunnel - and this time it's not a train."
DETROIT -- Saturn -- once dubbed the GM division that sells cars to people who don't like cars -- is creating a new look that draws heavily on Opel.
Saturn Corp. executives say the division will position itself upscale of Chevrolet and Pontiac, occupying the niche once held by Oldsmobile.
The division will unveil the look in January at the Detroit auto show, where it will introduce a rear-wheel-drive roadster and a concept version of a front-wheel-drive mid-sized sedan.
Both vehicles will enter production over the next 24 months. A mid-sized sport wagon will follow in the third quarter of 2006, says Saturn General Manager Jill Lajdziak.
With new products on the way, the division hopes to increase its sales volume from 271,157 units last year to more than 400,000 units annually by 2007. Saturn also plans to add 80 dealerships.
After nearly 15 years of lagging sales and uninspiring product, Saturn has begun a massive makeover. Internally, Saturn is calling the plan a "revitalization" of the brand, an investment that one GM executive recently described as costing "a couple billion."
But there's a distinct feeling that Saturn has been here before. When it was launched in 1990, GM executives believed Saturn could sell one-half million units a year. But in its best year, 1994, the division sold only 286,003 vehicles.
In an effort to revive the brand, Saturn introduced the Ion compact car, the Vue SUV and the L-series sedan. They flopped. For the first nine months of this year, Saturn sales totaled 170,938 units. That's down 21.1 percent from the year-ago period.
Worldwide collaboration
The new round of product development began 18 months ago at seven of GM's 11 design houses worldwide. Saturn's design studios in Los Angeles and Warren, Mich., collaborated with a Vauxhall design house in the United Kingdom and GM Europe studios in Trollhattan, Sweden, and Russelsheim, Germany.
But GM insiders say Opel's designers and its styling had the most influence on Saturn's new interiors and exteriors.
"A lot of our sharing, from a designer standpoint, was done with Opel in Germany," says Saturn designer Clay Dean. "Opel led the charge."
As a result, Lajdziak says the future products will show a new face of Saturn - one that will be consistent in future Saturn vehicles.
"Your design character has to be pulled through your portfolio, and I don't think over the years we've done that," Lajdziak says.
More dealers
Saturn's dealer network will change as well. Lajdziak says Saturn will add 80 dealerships to its current group of 454 locations. She says Saturn will increase the brand's presence in major markets as well as in smaller places such as Cedar Rapids, Iowa.
Saturn has drawn on Opel before. In 1999, Saturn sold a Vectra derivative as a mid-sized L-series sedan and station wagon. But the styling was generic, and consumers yawned.
GM Vice Chairman Robert Lutz says Saturn suffered under the weight of its own mission. "The idea behind the product was that it would be used as a tool," Lutz says. "It was anonymous and faceless. That's totally wrong. It's all about the car."
Lutz also says Saturn relied too much on its customer-friendly dealerships.
"The selling experience lasts one day, but the product experience has to last the other 364 days," Lutz says. "I started to ask, 'Why can't we have it both ways?' Let's have wonderful dealers and have consumers who are enthusiastic about the product."
Dealers who have seen the plan have welcomed it. But, then, there have been other plans before.
"We needed new products five or 10 years ago," says Bill Malvin, a manager at Saturn of Bloomington in Bloomington, Minn., where sales are down as much as 15 percent this year. "We've had a lot of stops and starts over the last decade, and the Saturn way is kind of, 'OK, we're doing this.' But it never quite happens."
Says Ron MacEachern, general manager of five Michigan Saturn stores: "It has been tough. When you look at what we sell, sometimes you wonder how we pulled a rabbit out of our hat. But I think we can see the light at the end of the tunnel - and this time it's not a train."
10-18-2004, 02:39 PM
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Originally Posted by bl^5
Upscale? That will be a HUGE change! Will they still be plastic?
02-22-2006, 01:32 AM
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Saturn's rebirth vexes Chevy dealers - - Leslie J. Allen - - Source: Autonews.com
Saturn dealer John Bergstrom is facing an unexpected dilemma. Weeks before the Sky roadster hits the showroom, it is generating so much buzz that he has started a waiting list at all six of his stores.
"Sky is just a flat-out home run," said Bergstrom, chairman of Bergstrom Automotive in Neenah, Wis. "I've never had that before. They've never even considered a Saturn."
Waiting lists are unfamiliar for Saturn, sometimes dubbed the brand for people who don't like cars.
General Motors is pouring money into the 16-year-old marque, hoping that a new arsenal of Euro-look vehicles will help Saturn steal buyers from the imports. The Sky debuts in the spring, followed by the Aura mid-sized sedan and the Outlook eight-passenger wagon.
But nagging questions remain: Will sales rise enough to justify Saturn's fatter marketing budget at a time when Pontiac and Buick must trim their own ad campaigns? And is Chevrolet, GM's strongest and biggest mass-market brand, actually a better candidate to battle the imports?
Chevy dealers say they could easily fit mid-priced vehicles like the Outlook and Aura into their lineups. They also note that GM is promoting Chevrolet as its mass-market global brand.
However, Saturn does have two big factors working in its favor: a group
of dealers who enjoy bulletproof
customer satisfaction ratings and some ability to attract America's import owners.
In the 2005 model year, 6.8 percent of Saturn sales were import conquests, according to R.L. Polk & Co. of Southfield, Mich. Polk defines a conquest as a customer who replaces or supplements an import with a newly purchased Saturn.
By contrast, import owners accounted for 13.6 percent of Hummer sales and 20.0 percent of Saab sales. But those are low-volume products.
It makes more sense to compare Saturn with Chevrolet. According to Polk, import owners accounted for 4.3 percent of Chevrolet's sales.
That's a fair number of vehicles but cold comfort to Chevrolet dealers who have complained quietly for years that an unprofitable Saturn sucked resources away from their brand.
If Saturn "is not making money, it shouldn't be anointed with such wonderful product," said Gordon Stewart, president of Stewart Management Group in Harper Woods, Mich., which has GM stores in Michigan and Florida. "Why does it continue to be fed at the expense of the other divisions?"
GM does not disclose the financial performance of individual brands.
Mike Maher, owner of Maher Chevrolet in St. Petersburg, Fla., said that if GM were to take what it spends on Saturn and put it into Chevrolet products, "you probably would have sold twice as many. If you take it away from a very strong division and give it to a weak division, you've likely diluted your outcome."
Happy customers
But if one judges Saturn by its customer satisfaction ratings, the division looks strong. Last year, consumers ranked Saturn ninth among all brands in sales satisfaction, as measured by J.D. Power and Associates.
The top eight were all luxury or near-luxury marques.
In addition, Saturn ranked third on J.D. Power's customer service index, which gauges the satisfaction of owners who visit service departments.
"Its reputation was based on customer satisfaction," said Tom Libby, a J.D. Power analyst. "Now they're adding this new dimension, which is styling. They have a challenge in doing both. I hope they will maintain a focus on customer relations because they've established that."
Saturn Marketing General Manager Jill Lajdziak said that relationship is Saturn's brand equity and the reason for GM's new investment.
According to GM's internal data, more than 70 percent of customers who buy Saturns would not have considered a GM brand otherwise, and about half of that number would have bought an import instead. Those statistics have held steady over the years, Lajdziak said.
"We've had strategies in place to make sure that we appeal to that intender who might be a little more import-predisposed," she said.
"It doesn't make sense for us to take business from Chevrolet or Pontiac or any of the other great brands within the GM family,"
Lajdziak said. "What we've got to do is bring in a different demographic and a different intender."
Different customers
The demographics of Saturn buyers do not appear to be all that different from those of Chevrolet buyers. Polk data show no significant difference in household income, for example.
But Bergstrom said his network of 22 GM dealerships draws different types of customers to the two brands. Trucks account for 65 percent of his Chevrolet sales, he said. Saturn, on the other hand, is an entry-level, value-priced product.
"A Chevrolet owner is a true-blue, bow-tie America consumer," Bergstrom said. "The Saturn guest is a little different guest. They might buy an Asian car or a Korean car or a Saturn. They are very much into safety and value, and how they're treated is critically important. I don't think we'd get those kinds of people in our Chevy stores if we didn't have the Saturn brand."
Jim Hall, an analyst for AutoPacific in Southfield, Mich., said he disagrees with the notion that investments in Saturn have siphoned money away from other GM brands.
Hall said that GM is investing in entire platforms, not just in Saturn, and that Chevrolet, Pontiac, Buick and GMC all have benefited.
For example, the Saturn Outlook shares GM's Lambda architecture with the basis for the upcoming Buick Enclave and GMC Acadia crossovers. The Saturn Sky has the same mechanicals as the Pontiac Solstice.
"Tell me how this is bad for these guys," Hall said.
No more Oldsmobiles
Other arguments aside, GM has no choice but to build up Saturn, said Art Spinella, president of CNW Marketing Research in Bandon, Ore. "You certainly can't terminate Saturn, because it's way too expensive, as they found out with Oldsmobile."
What role should Saturn play? Spinella said he believes there is nothing in the lineup that wouldn't fit with Chevrolet or Pontiac.
Perhaps GM should focus Saturn on "lifestyle" vehicles such as those designed for tuners - enthusiasts who currently opt for Honda, Mitsubishi or Subaru. Saturn took a step in that direction with the Sky and with its Red Line high-performance vehicles, Spinella said.
"One of the things they can do to distinguish themselves from the rest of General Motors is to be kind of the Scion of General Motors," he said. "You concentrate on lifestyle rather than on demographics in the old sense. Previously, Saturn wasn't distinctive in any way other than the sales environment."
The Sky might offer an interesting test of the brand's appeal to tuners. Can Saturn shed its fuddy-duddy image? Bergstrom seems to think so. He said he likes the idea of marrying Saturn's people-friendly philosophy with a potentially hot lineup: "This is going to be a real positive recipe, I think."
"Sky is just a flat-out home run," said Bergstrom, chairman of Bergstrom Automotive in Neenah, Wis. "I've never had that before. They've never even considered a Saturn."
Waiting lists are unfamiliar for Saturn, sometimes dubbed the brand for people who don't like cars.
General Motors is pouring money into the 16-year-old marque, hoping that a new arsenal of Euro-look vehicles will help Saturn steal buyers from the imports. The Sky debuts in the spring, followed by the Aura mid-sized sedan and the Outlook eight-passenger wagon.
But nagging questions remain: Will sales rise enough to justify Saturn's fatter marketing budget at a time when Pontiac and Buick must trim their own ad campaigns? And is Chevrolet, GM's strongest and biggest mass-market brand, actually a better candidate to battle the imports?
Chevy dealers say they could easily fit mid-priced vehicles like the Outlook and Aura into their lineups. They also note that GM is promoting Chevrolet as its mass-market global brand.
However, Saturn does have two big factors working in its favor: a group
of dealers who enjoy bulletproof
customer satisfaction ratings and some ability to attract America's import owners.
In the 2005 model year, 6.8 percent of Saturn sales were import conquests, according to R.L. Polk & Co. of Southfield, Mich. Polk defines a conquest as a customer who replaces or supplements an import with a newly purchased Saturn.
By contrast, import owners accounted for 13.6 percent of Hummer sales and 20.0 percent of Saab sales. But those are low-volume products.
It makes more sense to compare Saturn with Chevrolet. According to Polk, import owners accounted for 4.3 percent of Chevrolet's sales.
That's a fair number of vehicles but cold comfort to Chevrolet dealers who have complained quietly for years that an unprofitable Saturn sucked resources away from their brand.
If Saturn "is not making money, it shouldn't be anointed with such wonderful product," said Gordon Stewart, president of Stewart Management Group in Harper Woods, Mich., which has GM stores in Michigan and Florida. "Why does it continue to be fed at the expense of the other divisions?"
GM does not disclose the financial performance of individual brands.
Mike Maher, owner of Maher Chevrolet in St. Petersburg, Fla., said that if GM were to take what it spends on Saturn and put it into Chevrolet products, "you probably would have sold twice as many. If you take it away from a very strong division and give it to a weak division, you've likely diluted your outcome."
Happy customers
But if one judges Saturn by its customer satisfaction ratings, the division looks strong. Last year, consumers ranked Saturn ninth among all brands in sales satisfaction, as measured by J.D. Power and Associates.
The top eight were all luxury or near-luxury marques.
In addition, Saturn ranked third on J.D. Power's customer service index, which gauges the satisfaction of owners who visit service departments.
"Its reputation was based on customer satisfaction," said Tom Libby, a J.D. Power analyst. "Now they're adding this new dimension, which is styling. They have a challenge in doing both. I hope they will maintain a focus on customer relations because they've established that."
Saturn Marketing General Manager Jill Lajdziak said that relationship is Saturn's brand equity and the reason for GM's new investment.
According to GM's internal data, more than 70 percent of customers who buy Saturns would not have considered a GM brand otherwise, and about half of that number would have bought an import instead. Those statistics have held steady over the years, Lajdziak said.
"We've had strategies in place to make sure that we appeal to that intender who might be a little more import-predisposed," she said.
"It doesn't make sense for us to take business from Chevrolet or Pontiac or any of the other great brands within the GM family,"
Lajdziak said. "What we've got to do is bring in a different demographic and a different intender."
Different customers
The demographics of Saturn buyers do not appear to be all that different from those of Chevrolet buyers. Polk data show no significant difference in household income, for example.
But Bergstrom said his network of 22 GM dealerships draws different types of customers to the two brands. Trucks account for 65 percent of his Chevrolet sales, he said. Saturn, on the other hand, is an entry-level, value-priced product.
"A Chevrolet owner is a true-blue, bow-tie America consumer," Bergstrom said. "The Saturn guest is a little different guest. They might buy an Asian car or a Korean car or a Saturn. They are very much into safety and value, and how they're treated is critically important. I don't think we'd get those kinds of people in our Chevy stores if we didn't have the Saturn brand."
Jim Hall, an analyst for AutoPacific in Southfield, Mich., said he disagrees with the notion that investments in Saturn have siphoned money away from other GM brands.
Hall said that GM is investing in entire platforms, not just in Saturn, and that Chevrolet, Pontiac, Buick and GMC all have benefited.
For example, the Saturn Outlook shares GM's Lambda architecture with the basis for the upcoming Buick Enclave and GMC Acadia crossovers. The Saturn Sky has the same mechanicals as the Pontiac Solstice.
"Tell me how this is bad for these guys," Hall said.
No more Oldsmobiles
Other arguments aside, GM has no choice but to build up Saturn, said Art Spinella, president of CNW Marketing Research in Bandon, Ore. "You certainly can't terminate Saturn, because it's way too expensive, as they found out with Oldsmobile."
What role should Saturn play? Spinella said he believes there is nothing in the lineup that wouldn't fit with Chevrolet or Pontiac.
Perhaps GM should focus Saturn on "lifestyle" vehicles such as those designed for tuners - enthusiasts who currently opt for Honda, Mitsubishi or Subaru. Saturn took a step in that direction with the Sky and with its Red Line high-performance vehicles, Spinella said.
"One of the things they can do to distinguish themselves from the rest of General Motors is to be kind of the Scion of General Motors," he said. "You concentrate on lifestyle rather than on demographics in the old sense. Previously, Saturn wasn't distinctive in any way other than the sales environment."
The Sky might offer an interesting test of the brand's appeal to tuners. Can Saturn shed its fuddy-duddy image? Bergstrom seems to think so. He said he likes the idea of marrying Saturn's people-friendly philosophy with a potentially hot lineup: "This is going to be a real positive recipe, I think."
02-22-2006, 01:33 AM
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What's a Saturn franchise worth? - - Leslie J. Allen - - Source: Autonews.com
The prospect of better product is doing little to raise the value of Saturn's dealerships.
The estimated value of a Saturn franchise is two to three times the dealership's net annual pretax earnings, said Todd Berko, a partner at Bel Air Partners LLC, a Skillman, N.J., investment firm that specializes in automotive retailing.
By comparison, a Lexus franchise commands 6 to 10 times earnings, according to brokers recently interviewed by Automotive News.
These price estimates are dubbed "blue sky" - that is, the value of a dealership's intangible assets. Blue sky does not include tangible assets such as buildings and equipment.
"There's not a lot of blue sky in Saturn dealerships right now," Berko said. "There are some people who think Saturn is coming back, and there are some people who say 'Show me,' who are much more skeptical."
Saturn did succeed in selling dealerships in Saturn Retail Enterprises, a holding company formed in 1997. The last of the stores was sold last year, said Saturn spokesman Mike Morrissey.
General Motors formed the Charlotte, N.C., venture to acquire and operate stores when dealers failed to find buyers for them. It hoped to use funds from an initial public offering to acquire more Saturn stores. The IPO never happened, and the venture began shedding dealerships.
Saturn shed the dealerships by quietly putting them up for bid, a source told Automotive News. Brokers were not solicited. Instead, most of the bidders were other Saturn dealers, the source said.
The estimated value of a Saturn franchise is two to three times the dealership's net annual pretax earnings, said Todd Berko, a partner at Bel Air Partners LLC, a Skillman, N.J., investment firm that specializes in automotive retailing.
By comparison, a Lexus franchise commands 6 to 10 times earnings, according to brokers recently interviewed by Automotive News.
These price estimates are dubbed "blue sky" - that is, the value of a dealership's intangible assets. Blue sky does not include tangible assets such as buildings and equipment.
"There's not a lot of blue sky in Saturn dealerships right now," Berko said. "There are some people who think Saturn is coming back, and there are some people who say 'Show me,' who are much more skeptical."
Saturn did succeed in selling dealerships in Saturn Retail Enterprises, a holding company formed in 1997. The last of the stores was sold last year, said Saturn spokesman Mike Morrissey.
General Motors formed the Charlotte, N.C., venture to acquire and operate stores when dealers failed to find buyers for them. It hoped to use funds from an initial public offering to acquire more Saturn stores. The IPO never happened, and the venture began shedding dealerships.
Saturn shed the dealerships by quietly putting them up for bid, a source told Automotive News. Brokers were not solicited. Instead, most of the bidders were other Saturn dealers, the source said.
02-22-2006, 08:12 AM
#60
Fahrvergnügen'd
There's a reason that pro athletes buy car dealerships ... They must make decent money from them ... It might be worth taking a chance on a Saturn dealership if they are selling that low right now ... The Sky and Aura could turn things around ... If they add the Opel Astra as the new Ion I think Saturn will be back completely.
02-22-2006, 09:45 AM
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^ Agreed. Hell, I'd buy a Saturn dealership. Especially now. With a hot ass product like the Sky, premium bread and butter products like the Aura and Outlook, now's the time to get in. Also, the next Vue is rumored to be based off the very nice Opel Antara, and Saturn's also supposed to be getting the next gen Astra (about two years away) to replace the Ion. Saturn's already registered the name in the U.S.
02-22-2006, 09:47 AM
#62
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I cant wait to sit inside a Sky and see what they have done to the interior.
My dad rented an Ion and the interior was the biggest piece of shit ever.
And this is coming from a Chrysler owner.
My dad rented an Ion and the interior was the biggest piece of shit ever.
And this is coming from a Chrysler owner.
02-22-2006, 09:55 AM
#63
'Big Daddy Diggler'
I like the direction Saturn is heading in. It's like no other car makers are paying attention to them and they are slowly creaping in and getting bigger and stronger in design and sales. Look at what Hyundai is doing. Toyota and Honda really didnt care about Hyundai at first. Now they are going to start sweating when Hyundai steals sales.
02-22-2006, 04:07 PM
#65
Originally Posted by SakiGT
I cant wait to sit inside a Sky and see what they have done to the interior.
My dad rented an Ion and the interior was the biggest piece of shit ever.
And this is coming from a Chrysler owner.
My dad rented an Ion and the interior was the biggest piece of shit ever.
And this is coming from a Chrysler owner.
From the pics it doesn't look that bad. Guess we'll have to see how plasticy this thing really is when it debuts...
02-22-2006, 05:57 PM
#66
Burning Brakes
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Originally Posted by ilitig8
I would have never considered a single Saturn before, now they have 2 coming that interest me (Aura and Sky).
02-22-2006, 06:07 PM
#67
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Originally Posted by iNteGraz92
that's because now they're rebadging their european branded cars that look good instead of ugly american GM stuff.
02-22-2006, 07:05 PM
#68
Fahrvergnügen'd
Originally Posted by ilitig8
Agreed, except the Aura is almost a clean slate car (with admittedly deep Opal influence). I just don't understand why they don't bring the Vauxhall VX220 and VX220 Turbo here, badge it a Corvair if they like I would still be in line for one. It may be stupidity or it may be some issue with Lotus regarding the NA market.
03-06-2006, 11:04 AM
#69
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Into Opel's Orbit - - Lutz says 'Saturn will be like Vauxhall' - - AutoWeek | Published 03/06/06 - - Source: Autoweek
GENEVA -- Saturn's future looks a lot like the present-day status of General Motors' British subsidiary, Vauxhall.
Vauxhall slaps its badge on cars created by GM's German subsidiary, Adam Opel AG. That's what Saturn will do, at least in the heart of its car lineup, GM executives said in interviews at the Geneva auto show.
The move is meant to bring European design flair and sporty handling to Saturn. But it's also a sign of GM's move to strip regional and brand executives of authority to modify global decisions in engineering, design and manufacturing.
Saturns still will be built in North America, not Europe. GM executives aren't talking about importing and rebadging vehicles produced at Opel plants overseas, but rather making the identical cars in the United States.
But brand bosses would lose some control. Robert Lutz, GM vice chairman and head of global product development, said that in much of its lineup, "Saturn will be like Vauxhall."
He added: "Now Opel cars will be done for three brands instead of two."
Not 100%
The changes will play out in the heart of the car lineup, with the next Saturn Ion subcompact likely to be a rebadged Opel Astra. Carl-Peter Forster, president of General Motors Europe, said the 2007 Saturn Aura, which replaces the defunct L series mid-sized car in Saturn's lineup, is "clearly Opel-inspired."
The Aura shares the Epsilon mid-sized car platform with the Opel Vectra. GM Europe's design studio in Ruesselsheim, Germany, influenced the styling.
But GM CEO Rick Wagoner said the Opelization of Saturn is not total. The Saturn lineup also will include vehicles exclusive to North America, he said.
One example is the coming Saturn Outlook crossover, built on the Lambda architecture in Lansing, Mich.
Vauxhall derivative
When working with Opel, Saturn officials will participate in initial product planning, Lutz said. But they won't be able to dictate changes.
"Saturn would be involved early on, but I would say they're definitely the junior partner in the relationship," Lutz said.
"The Opel product is good. Does Saturn wish they had an Opel Astra (compact car) instead of a Saturn Ion?"
You bet, Lutz contends.
Lajdziak: 'We feel very good'
Jill Lajdziak, general manager of the Saturn brand, said Saturn and Opel will work together as partners and will make sure products will work in both regions.
"Obviously we feel very good about our relationship with Opel," Lajdziak said. "It's a good example of leveraging GM's global capabilities."
As for replacing the Ion with Opel's Astra, Lajdziak said that Saturn is looking at several alternatives for the Ion, but she declined to discuss those options.
No to regionalism
Lutz clearly has little patience for what he called "the ugly head of regionalism" that results in changes to vehicle designs coming in from another region.
He cited U.S. engineers' decision to soften the ride of the Opel Astra when creating two platform mates, the U.S.-built Pontiac G6 and Chevrolet Malibu. The result, Lutz said, was additional work and inferior vehicle handling.
"Part of it is job protection; part of it is the old regionalism coming through that 'we have our own standards in the United States, and we're not going to pick up what the Europeans do,' " Lutz said.
"We are going to be watching this like a hawk. Nothing gets changed unless it absolutely has to."
The benefit, Lutz said, is in cutting component costs and product development costs. If it can enforce its plan, GM can save as much as 40 percent on engineering costs of new vehicles.
Said Lutz: "This is the advantage of it being my budget and not a regional budget."
Leslie J. Allen contributed to this report
Vauxhall slaps its badge on cars created by GM's German subsidiary, Adam Opel AG. That's what Saturn will do, at least in the heart of its car lineup, GM executives said in interviews at the Geneva auto show.
The move is meant to bring European design flair and sporty handling to Saturn. But it's also a sign of GM's move to strip regional and brand executives of authority to modify global decisions in engineering, design and manufacturing.
Saturns still will be built in North America, not Europe. GM executives aren't talking about importing and rebadging vehicles produced at Opel plants overseas, but rather making the identical cars in the United States.
But brand bosses would lose some control. Robert Lutz, GM vice chairman and head of global product development, said that in much of its lineup, "Saturn will be like Vauxhall."
He added: "Now Opel cars will be done for three brands instead of two."
Not 100%
The changes will play out in the heart of the car lineup, with the next Saturn Ion subcompact likely to be a rebadged Opel Astra. Carl-Peter Forster, president of General Motors Europe, said the 2007 Saturn Aura, which replaces the defunct L series mid-sized car in Saturn's lineup, is "clearly Opel-inspired."
The Aura shares the Epsilon mid-sized car platform with the Opel Vectra. GM Europe's design studio in Ruesselsheim, Germany, influenced the styling.
But GM CEO Rick Wagoner said the Opelization of Saturn is not total. The Saturn lineup also will include vehicles exclusive to North America, he said.
One example is the coming Saturn Outlook crossover, built on the Lambda architecture in Lansing, Mich.
Vauxhall derivative
When working with Opel, Saturn officials will participate in initial product planning, Lutz said. But they won't be able to dictate changes.
"Saturn would be involved early on, but I would say they're definitely the junior partner in the relationship," Lutz said.
"The Opel product is good. Does Saturn wish they had an Opel Astra (compact car) instead of a Saturn Ion?"
You bet, Lutz contends.
Lajdziak: 'We feel very good'
Jill Lajdziak, general manager of the Saturn brand, said Saturn and Opel will work together as partners and will make sure products will work in both regions.
"Obviously we feel very good about our relationship with Opel," Lajdziak said. "It's a good example of leveraging GM's global capabilities."
As for replacing the Ion with Opel's Astra, Lajdziak said that Saturn is looking at several alternatives for the Ion, but she declined to discuss those options.
No to regionalism
Lutz clearly has little patience for what he called "the ugly head of regionalism" that results in changes to vehicle designs coming in from another region.
He cited U.S. engineers' decision to soften the ride of the Opel Astra when creating two platform mates, the U.S.-built Pontiac G6 and Chevrolet Malibu. The result, Lutz said, was additional work and inferior vehicle handling.
"Part of it is job protection; part of it is the old regionalism coming through that 'we have our own standards in the United States, and we're not going to pick up what the Europeans do,' " Lutz said.
"We are going to be watching this like a hawk. Nothing gets changed unless it absolutely has to."
The benefit, Lutz said, is in cutting component costs and product development costs. If it can enforce its plan, GM can save as much as 40 percent on engineering costs of new vehicles.
Said Lutz: "This is the advantage of it being my budget and not a regional budget."
Leslie J. Allen contributed to this report
03-06-2006, 11:56 AM
#71
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Originally Posted by gavriil
From a financial standpoint, this is huge.
being introduced.
03-06-2006, 12:10 PM
#72
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I am more excited above the imporved driving dynamics and stylish interior and exteriors. Take a look at the new Astra, it's a good looking car that would sell well here.
03-06-2006, 12:13 PM
#73
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Originally Posted by titan
Absolutely. The savings from R&D, design, etc. for this brand will be great. And ofcourse, this is a rebrand from a forgein market, so as far as the NA market is concerned, Saturn's styling will be unique. But just as importantly (if not more so), is that Opel's styling is sexy and sleek, and I think it's European styling will resonate here (NA market) much more so than what Saturn produces right now. The Sky and Aura are the tip of the iceberg. The next Vue (Opel Antera) and Ion (rumored to be next gen Astra) will further flesh out a fresh new lineup. I think sales will rise with the new lienup being introduced.
being introduced.Oh for sure Saturn sales will be A LOT higher than now after these new models reach the dealers' lots.
03-06-2006, 12:14 PM
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Originally Posted by gavriil
Oh for sure Saturn sales will be A LOT higher than now after these new models reach the dealers' lots.
03-06-2006, 09:37 PM
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Originally Posted by charliemike
I am VERY excited about this ... I can't wait for the Saturn "Astra" announcement 
Yeah. It's the true definition of "hot hatch."
03-07-2006, 07:43 PM
#78
6G TLX-S
That's it. Shut down all the GM design and GM R&D centers in the US. Rebadge all the European Opel and Vauxhall vehicles, and sell them as GM cars in the US. Now not only can GM save a load of money, it can also has cars that can sell well.
04-19-2006, 04:16 PM
#79
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Opels Coming? - - Exports to America possible, Lutz says, as Saturn plan develops - - By JASON STEIN | AUTOMOTIVE NEWS EUROPE - - Source: Autoweek
MUNICH – Opel cars built in Germany could be exported to the U.S., says General Motors Vice Chairman Robert Lutz.
Lutz said GM is interested in producing similar Saturn and Opel models in either Europe or North America and shipping both ways across the Atlantic.
Saturn and Opel both are GM-owned brands.
“It’s certainly something we would want to seriously consider,” Lutz told Automotive News Europe during a press event here.
Although he gave no specific timetable, Lutz said production sharing could increase as the Saturn and Opel lineups become almost identical.
“Once we get the Saturn product completely aligned with the Opel product and they are fundamentally the same,” Lutz said, “then we absolutely have the possibility of doing some models in the US and shipping them to Europe and doing other models in Europe and shipping them to the US. Now you get sourcing flexibility.”
GM already is building Opel’s new GT roadster in the US in Wilmington, Delaware, next to its sister car, the Saturn Sky. Future Saturns have been developed using Opel’s engineering and design staff in Rüsselsheim, near Frankfurt, Germany.
Opel also is the GM global development center for GM’s next range of small- and mid-sized cars.
Workers’ representatives in Germany have been pressuring GM to export Opel cars to the US to secure jobs and fill under-used capacity in German factories.
GM “should take advantage of the global size of the company and sell modern Opels in the US under the badge of Saturn,” Klaus Franz, chairman of Opel’s works council told Automobilwoche, ANE’s sister publication, in December. In the future, Lutz said, Saturn vehicles derived from Opels would only need minor bumper changes to meet US regulations. He called them “invisible compliance parts.”
– Harald Hamprecht contributed
Lutz said GM is interested in producing similar Saturn and Opel models in either Europe or North America and shipping both ways across the Atlantic.
Saturn and Opel both are GM-owned brands.
“It’s certainly something we would want to seriously consider,” Lutz told Automotive News Europe during a press event here.
Although he gave no specific timetable, Lutz said production sharing could increase as the Saturn and Opel lineups become almost identical.
“Once we get the Saturn product completely aligned with the Opel product and they are fundamentally the same,” Lutz said, “then we absolutely have the possibility of doing some models in the US and shipping them to Europe and doing other models in Europe and shipping them to the US. Now you get sourcing flexibility.”
GM already is building Opel’s new GT roadster in the US in Wilmington, Delaware, next to its sister car, the Saturn Sky. Future Saturns have been developed using Opel’s engineering and design staff in Rüsselsheim, near Frankfurt, Germany.
Opel also is the GM global development center for GM’s next range of small- and mid-sized cars.
Workers’ representatives in Germany have been pressuring GM to export Opel cars to the US to secure jobs and fill under-used capacity in German factories.
GM “should take advantage of the global size of the company and sell modern Opels in the US under the badge of Saturn,” Klaus Franz, chairman of Opel’s works council told Automobilwoche, ANE’s sister publication, in December. In the future, Lutz said, Saturn vehicles derived from Opels would only need minor bumper changes to meet US regulations. He called them “invisible compliance parts.”
– Harald Hamprecht contributed