DETROIT – A $250 million grant from
the American Recovery and Reinvestment Act, could easily resolve the
late breaking issues that prompted the unexpected, last minute collapse of
the proposed Penske Automotive Group purchase of Saturn, according to
Todd Ingersoll, Saturn’s Retailer Council member.
“This is well within the parameters of grants already made through the
Act, and will save 13,000 jobs, avoid the closure of 350 Saturn
dealerships, and preserve millions in tax revenue,” said Ingersoll. “The
Act has millions of dollars allocated for energy projects, including
electric vehicle technologies, which is in perfect alignment with Saturn’s
historic commitment to distributing environmentally friendly vehicles.”
Recent months have seen a groundswell of support from Saturn Retailers
for Penske to buy Saturn – and they continue to urge resolution of the
issues that resulted in the deal’s failure. “My phone has been ringing off
the hook with Retailers who want to be part of a future with Roger Penske,”
says Ingersoll.
The negotiations began in June 2009, when Penske announced his
intentions to purchase Saturn. In just four months, the principles of an
agreement were reached.
“The challenge of reaching agreement on product sourcing in just four
months is exceptionally difficult in the automotive industry, given
engineering, design, safety and emission requirements,” said
Ingersoll. “Applying for and eventually receiving a $250 million grant from
the American Recovery and Reinvestment Act is a solution that can be a
win-win for everyone involved, using taxpayer funds to preserve jobs,
maintain tax collections and allow Saturn to further help our economic
recovery.”
Since its inception in 1990, the Saturn brand, with its no-hassle
pricing philosophy, has made more than 3.4 million sales to legions of
loyal customers. Ingersoll concluded: “While the stunning turn of events
last week has many asking why, my retailer partners and I are asking why
not? Shouldn’t we leverage resources from the American Recovery and
Reinvestment Act to finalize the deal with PAG and save 13,000 jobs?”
a>>





