The Saturn Contingencies

GM’s “different kind of car company” is furiously trying to forge a future amid plummeting sales and little outside interest in buying the brand. Saturn’s Franchise Operations Team has been meeting with GM executives in hopes of creating some kind of strategy for the brand’s dealer network. According to Automotive News [sub] the options were narrowed down at a meeting last week, and after further refinement they should be presented to Saturn dealers later this week. When asked if this spelled the end for the Saturn name, Franchise Operations Team member Todd Ingersoll told AN “everything is fluid. You can’t commit to any option.” But he also indicates that “you don’t need four options to kill a brand.” So what’s really going on?

As with most GM decisions these days, the critical factor is finding a way forward that will appeal to the federal subsidy masters. Since GM’s viability plan calls for concentration on Chevy, Cadillac, Buick and Pontiac, most Saturn dealers see their fate as sealed. And they say that the perception of Saturn as a dead brand walking is hurting sales. “I’m really surprised we’re still selling the cars we’re selling,” says one Texas Saturn dealer. He notes that customers often express concern over warranty and parts availability issues that could arrise if the brand is axed. This concern is doubtless being fuelled by GM’s decision, reported at Ward’s Auto [sub] to cancel Saturn’s 30-day return policy.

And this compounding effect could radically reduce the chances that Saturn will survive. “We haven’t seen a dramatic difference in their business,” notes GM’s Mark LaNeve. “Obviously, the quicker we can clarify our direction with Saturn in line with the viability plan, the better.” Ultimately though, GM seems to be keeping its options open until the last possible minute. Ingersoll notes that GM’s decision for Saturn may be disclosed within hours of filing the new viability plan on the 17th. Maybe they think a buyer will come along between now and then. After all, self-deluding optimism seems to be quite the popular survival mechanism these days.