Report: Renault-Nissan interested in buying Saturn

By Chris Georg
23:15, May 6th 2009
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New York - Renault-Nissan is talking to General Motors about buying GM's Saturn line, according to the Wall Street Journal on Wednesday.

Saturn is one of five car lines the country's largest car maker intends to shed as it races to prove its financial viability to the US government before a June 1 deadline that could spell bankruptcy if it falls short.

The other brands include Opel, object of a possible bidding contest between Italy's Fiat and the Austro-Canadian Magna; Hummer and Saab. GM has already sounded the death knell for its line of Pontiac muscle cars.

The Wall Street Journal cited two informed, unnamed people close to the Renault-Nissan talks as saying Saturn could provide the basis for growth in North America for the joint French-Japanese firm.

Earlier Wednesday, Bloomberg financial news service reported that Nissan, Japan's third-largest car maker, could join a venture with US retailer Penske Automotive Group and Saturn.

Nissan, along with its affiliate Renaut or another car manufacturer, could make Saturn-brand vehicles in an arrangement operated by Penske and distributed through Saturn's existing retail network, people close to the talks told Bloomberg.

Penske has exclusive retail rights for Daimler's mini-car, Smart.

GM said Monday it had a "number of buyers" interested in Saturn after it announced last week it was seeking bidders.

Saturn has about 400 retail dealerships in the US and Canada. Its brand includes the Sky roadster, the Aura midsize sedan, the Vue compact crossover, the midsize Outlook crossover and Astra compact car. Vue and Aura include a line of hybrids.

If GM does not find a buyer by year's end, the division is expected to close, the Detroit Free Press reported.

GM is on a 15.4-billion-dollar government lifeline that will be cut off if the company cannot reduce costs and become viable by June 1.

Last week, the country's third-largest car maker Chrysler, which had received 4.5 billion dollars in loans, ended up in bankruptcy reorganization after failing the test.



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