Equity group, dealers make Saturn bid

[rickaren]

Equity group, dealers make Saturn bid

Posted Thursday, Apr 16, 2009, 12:02 pm in Industry

A group of investors and dealers emerged Wednesday as bidders for General Motors Corp.’s struggling Saturn brand, which is slated to be eliminated as part of the automaker’s restructuring unless a buyer is found, The Detroit News reported.

The group, Telesto Ventures, which includes Oklahoma City-based private equity firm Black Oak Partners LLC and several Saturn dealers, submitted a proposal last week to acquire the assets of Saturn Distribution Corp, The News said. GM said there are multiple suitors for the brand, the paper reported.

Telesto, named after a moon that circles the planet Saturn, would initially distribute GM-built vehicles through Saturn’s 439 dealerships in North America and eventually offer small, fuel-efficient vehicles produced by several manufacturers, most of which would be sold under the Saturn brand, the article said.

The financial terms of Telesto’s offer were not released. If a deal is completed, it could salvage a customer-friendly brand whose sales have plummeted more than most of GM’s brands, preserve jobs and give the Detroit automaker a much-needed cash infusion as it restructures and pursues additional federal aid, the story said. (The Detroit News)