General Motors Co. will stop manufacturing Saturn after an agreement with Penske Automotive Group Inc. to purchase the maligned brand collapsed.
Unsure if it could continue to supply vehicles after a manufacturing contract with GM ran out, Penske withdrew its interest in the brand.
Fritz Henderson, the GM CEO said in statement "Saturn and its dealership network will be phased out."
"This is very disappointing news and comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality," Henderson
said in a written statement. "PAG's announcement explained that their decision was not based on interactions with GM or Saturn retailers."
In a statement, the Bloomfield Hills, Mich.-based auto retailer says an agreement with another manufacturer to continue producing Saturn vehicles after GM stopped making them fell through, leading Penske to terminate talks with GM.
Penske said it negotiated terms and conditions to make Saturn cars with another manufacturer, but that company's board of directors rejected the agreement. Penske spokesman Anthony Pordon would not identify the other manufacturer.
"Without that agreement, the company has determined that the risks and uncertainties related to the availability of future products prohibit the company from moving forward with this transaction," the company said in a statement.
