It seems that Saturn’s days are numbered — Recent reports have let us know that Penske Automotive group has backed out of a deal with GM that would have effectively purchased the entire Saturn brand.

The reason for the backing out is because Penske fears they will not be able to provide the Saturn dealerships with inventory after GM stops supplying them with vehicles at the end of 2010. The deal said that they would have to find their own manufacturers to produce vehicles for the dealerships, something Penske doesn’t think they will be able to do.

So, in lieu of this deal falling through, GM has said they will be phasing out Saturn, closing all dealerships and directing current Saturn owners to other GM dealers for service. Goodbye Saturn, you shall be missed.

via autoblog

Continue reading...

Back in June reports surfaced of a possible Hummer buyout by China’s Tengzhong but here we are 3 months later and still no deal. Today, however, reports have again surfaced regarding the buyout, this time notifying us that it is expected to go down in Q3 of this year.

There’s no official word on just how much the transaction will go down for but Autoblog suggests Tengzhong will be paying about half of what GM had originally wanted for it or about $200 million.

Let’s hope that under Tengzhong’s management, the Hummer brand will live on.

Continue reading...

We got our first hint that Porsche and VW would merge into a single company back in May but ever since no deal has officially gone through. Today however, reports suggest that VW is all ready to actually buy-out Porsche effectively merging the two companies.

The deal will apparantly allow Porsche to get out of the severe debt they are currently with as VW will pay off €8 billion of their €10 billion+ debt in two stages.

If all goes well and this deal pans off, VW is looking at a 49.9% share in Porsche. Now let’s see a VW branded supercar hit the market!

via Autoblog

Continue reading...

Seeing that the auto industry isn’t showing any sign of improvement, nearly 7,500 workers have opted to grab early retirement options, leaving the big three auto companies (Chrysler, General Motors and Ford), in a move that seems to be better for their end.

Since 2006 General Motors Corporation (GM) (Detroit, Michigan) has made early retirement and buyout offers to its workers three times, with more than 60,000 employees accepting. Ford Motor Company (Dearborn, Michigan) and Chrysler LLC (Auburn Hills, Michigan) have also made similar offers during this time period.

During the latest round of buyout and early retirement offers at GM however, the majority of the employees who have accepted, 7,500 to be exact, will take early retirement rather than the buyout.

(Source) Industrial Info

Continue reading...