GM Saturn, sell or drop?

What’s the future of GM’s Saturn? Sell or drop?

The ailing Detroit carmaker confirmed in its most recent viability plan that it accelerate the demise of the brand to the end of this year, with either a sale or cessation of business marking the end of General Motors' involvement with Saturn. Earlier this month we heard about a new investment group by the name of Telesto Ventures reportedly planning to buy Saturn outright and source its own models from several overseas suppliers, though the accelerated time table may make that difficult to achieve.

GM manager Jill Lajdziak revealed to Automotive News that the struggling Detroit 3 carmaker is trying to find a new vehicle supplier for Saturn by September 1. The announcement was also made to Saturn dealers, who at this point are still confused and uncertain as to the direction the brand will take. Beginning next month, Saturn executives and GM higher-ups will listen to different proposals and choose the best deal for both companies. The bottom line is clear, however, with GM saying in its latest viability plan, "If a sale of Saturn does not occur, we intend to phase out the Saturn brand by the end of 2009."

Some of the proposals coming in would alter Saturn's retail operations dramatically. One of the most popular is the previously mentioned Telesto option. Under this proposal, the overseas models sourced by Telesto would not be branded as Saturns, but would rather be sold under various brand names. A Telesto spokesman explained that the Saturn brand would become "similar to a Best Buy model in that customers deal with Best Buy because of the customer experience not because they are the only place to buy a Samsung or a Sony TV".

Presumably there will also be foreign carmakers vying for the brand itself - creating brand recognition in the crowded U.S. market is difficult for foreign start-ups, and having the Saturn brand as a launching pad may seem very attractive to certain manufacturers.

A somewhat mysterious coalition of Saturn's dealer-run Franchise Operations Team and an unknown partner - possibly Telesto - has also revealed plans to take over Saturn if the brand is abandoned by GM. Only time will tell what result is final, but with 2009 nearing its midpoint it won't be long.