BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--
Penske Automotive Group, Inc. (NYSE:PAG), www.penskeautomotive.com,
an international automotive retailer, announced today that is has signed
a Memorandum of Understanding ("MOU") with General Motors regarding the
Saturn brand.
Under the terms of the MOU, if the transaction is completed, Penske
Automotive Group would obtain the rights to the Saturn brand, acquire
certain assets including the Saturn parts inventory, and have the right
to distribute vehicles and parts through the Saturn Dealership network.
General Motors would continue to provide Saturn Aura, Vue and Outlook
vehicles, on a contract basis, for an interim period.
"We have agreed upon a framework that we believe will build momentum for
the Saturn brand," said Penske Automotive Group Chairman Roger Penske.
"Saturn has a passionate customer base and outstanding dealer network.
For nearly 20 years Saturn has focused on treating the customer right.
We share that philosophy, and we want to build on those strengths."
Saturn began selling cars in 1990 and has sold more than 4 million
vehicles. More than 80 percent of those vehicles are still in operation,
according to data from R.L. Polk. Saturn has regularly scored among the
industry leaders for non-luxury brands in customer satisfaction surveys.
Commenting on the proposed deal, Saturn general manager Jill Lajdziak
said, "This is the combination of two iconic teams: Saturn and Penske.
GM had the vision to create Saturn and has the desire to see it succeed
in the future."
Further details of the transaction are not being released at this time.
The closing of the transaction is expected to occur during the third
quarter of 2009 and is subject to customary conditions, including the
completion of due diligence, regulatory and other approvals.
About Penske Automotive
Penske Automotive Group, Inc., (www.penskeautomotive.com)
headquartered in Bloomfield Hills, Michigan, operates 310 retail
automotive franchises, representing 40 different brands and 25 collision
repair centers. Penske Automotive, which sells new and previously owned
vehicles, finance and insurance products and replacement parts, and
offers maintenance and repair services on all brands it represents, has
158 franchises in 19 states and Puerto Rico and 152 franchises located
outside the United States, primarily in the United Kingdom. Penske
Automotive is also the exclusive distributor of the smart fortwo through
its wholly-owned subsidiary smart USA Distributor LLC (www.smartusa.com).
smart USA supports over 75 smart retail centers in the United States.
Penske Automotive is a member of the Fortune 200 and Russell 1000 and
has approximately 14,000 employees. smart and fortwo are registered
trademarks of Daimler AG.
About General Motors
General Motors Corp., one of the world's largest automakers, was founded
in 1908, and today manufactures cars and trucks in 34 countries. With
its global headquarters in Detroit, GM employs 235,000 people in every
major region of the world, and sells and services vehicles in some 140
countries. In 2008, GM sold 8.35 million cars and trucks globally under
the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo,
Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's
largest national market is the United States, followed by China, Brazil,
the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary
is the industry leader in vehicle safety, security and information
services. More information on GM can be found at www.gm.com.
Forward Looking Statements
Statements in this press release involve forward-looking statements,
including forward-looking statements regarding Penske Automotive Group's
potential acquisition noted above. Actual results may vary materially
because of risks and uncertainties, including satisfaction of
various conditions, such as required regulatory and bankruptcy court
approvals, satisfactory completion of due diligence and other
conditions, many of which are outside of our control. These
forward-looking statements should be evaluated together with additional
information about Penske Automotive's business, markets, conditions and
other uncertainties, which could affect Penske Automotive's future
performance, which are contained in Penske Automotive's Form 10-K for
the year ended December 31, 2008, and its other filings with the
Securities and Exchange Commission. This press release speaks only as of
its date, and Penske Automotive disclaims any duty to update the
information herein.
Source: Penske Automotive Group, Inc.
Contact: Penske Automotive Group Contacts:
Bob O'Shaughnessy
Chief Financial Officer
248-648-2800
boshaughnessy@penskeautomotive.com
or
Anthony R. Pordon
Senior Vice President
248-648-2540
tpordon@penskeautomotive.com
or
Saturn Contact:
Steve Janisse
Manager, Saturn Communications
313.665.2133 (office)
steve.janisse@gm.com