End of the Road for Saturn

A casualty of the global economic downturn and the years-old troubles in the American auto industry, the Saturn line of vehicles produced by General Motors is coming to an end. The brand made a name for itself by marketing itself as a different car company, one that wouldn’t haggle with customers over prices and offered quality and affordability comparable to Japanese-made vehicles.

Despite strong customer reviews and an independent sales experience - separate from GM ownership - the brand could not survive the recession or the growing problems within the U.S. auto industry. By the end of 2010, the brand will officially be taken off the new-car marketplace.

History of Saturn

Developed in 1985 as a response to the growing interest of United States’ consumers in efficient and inexpensive Japanese automobiles, Saturn was designed to create a new energy and opinion of American-made vehicles. Dubbed “a different kind of car” by its commercials, the subsidiary was intended to broaden GM’s reach in middle-class America.

The entire Saturn brand, while owned by GM, was operated separate from Detroit headquarters. Vehicles were built in Tennessee and sold in independent auto dealerships that weren’t necessarily attached to other GM brands. By 1999, Saturn had created and sold its 2 millionth vehicle.

Early Problems

While the thought might have been a good idea, the implementation of Saturn seemed doomed from the beginning. First, the nation was in a recession in the early 90s, making it difficult for Saturn to gain footing in the marketplace while it was spending money on new plants, new employees, new designs and creating a complete auto line from scratch. It didn’t help, either, that nearly half of Saturn’s early customers identified themselves as previous owners of GM vehicles - Saturn wasn’t cutting into the Toyota or Honda marketplaces.

The End of an Era

When General Motors’ financial troubles reached a boiling point in 2009, the company had to determine exactly which of its brands it would keep, and which would cease production or be placed on the market for sale. The company listed Chevrolet, Cadillac, Buick and GMC as the four brands that would stay intact - but that also left out several lines, including Pontiac, Hummer, Saab and Saturn, as those that would be eliminated.

For some time throughout 2009, it seemed possible that Penske would step in to buy Saturn or to take over sales and production of some of its individual models (such as the Vue and Aura). But negotiations with GM fell through, and GM ultimately decided that the Saturn brand would be eliminated for good.

After talks stopped with Penske, GM announced that the Saturn brand would gradually be phased out. The 46 Saturn dealerships in Canada would be closed by the end of 2009, and the dealerships in the United States would close by October 2010. Anyone who purchases a Saturn between now and then can have his/her car serviced at the dealerships until they sell; after October 2010, customers can visit GM dealerships for service.