General Motors May Keep Saturn Alive

General Motors Corporation told reporters at the National Automobile Association convention that Saturn may survive restructuring that could kill or seriously truncate four of its eight brands.

“If we wanted to shut it down, we could have announced that,” said Mark LaNeve, General Motors’ Vice President of North America sales, service, and marketing. “Saturn may well have a place.”

But General Motors will not commit to any plan of action regarding Saturn until they submit their restructuring plan to Congress next month. GM and Chrysler, who both are seeking loans from the government, must submit their plans by February 17 and must show significant signs of turning their ailing business around by March 31. If no progress is made, the Treasury Department can recall the loans. “We’d like to have clarity and narrow our options in February,” said LaNeve. “We don’t want to drag on forever.”

The possibility of Saturn’s survival gives hope to the brands nearly 400 dealers. Many Saturn dealerships have noted anemic sales since General Motors claimed the brand might be removed from the GM family. General Motors is looking to do away with 1,750 dealers in three years, with the plan of consolidating dealerships in metropolitan areas.

Keep track of moves within the auto industry at Employment Crossing.