Bloomberg reports that Renault/Nissan is looking at partnering with Penske Automotive Group to make a bid for the Saturn dealer net, according to “people familiar with the matter.” Nissan wants to use more of its North American capacity to build Saturn-branded vehicles based on either Nissan or Renault products. Penske would distribute the vehicles through existing Saturn dealers, using its “plug and play” model already in use with Smart dealerships. In this arrangement, Smart takes customer orders and deposits via a Web site, allowing dealers to keep fewer cars in inventory. Would this work with a larger model line? Does Nissan/Renault really want to compete with itself? Does GM really have another month to solicit offers (as it plans to) for Saturn? Will those offers improve over the next month? Er, maybe, apparently, no and definitely no. Still, if Penske and Nissan want to pull the trigger, it’s hard to see how GM could say no. And maybe, just maybe, Saturn could once again become America’s most innovative dealer network.
I can’t say whether or not this is a good idea, but I have said before that this seems like the perfect time for someone to rethink the automotive retail method. The current dealership model has been basiclly unchanged since the era of Ford’s Model T. Independent dealers agree to sell and service a manufacturer’s product. Low cost to the manufacturer, but very little quality control over the sales and service channel. It seems that for every good dealership experience, we hear 30 horror stories.
Saturn has been the only retail channel to distinguish itself during this period. But it is a tweak, not a wholesale revision of the basic concept.
Between Roger Penske and Saturn, This could be a very interesting era for automotive retailing.
if this somehow translates into me getting a Saturn-branded Clio V6, I’m all for it.
JP,
Contact your legislator. Your state, in an attempt at a free lunch, codified the dealer system in your state laws. The benefit was hidden taxes on you, and some regulation ability over the industry. And, you know the cost, but you cannot prove that there would be innovation and improvement that would benefit consumers because they won’t let anyone try. It’s the sort of thing they actually do brilliantly in the capitols.
This sounds like an interesting concept, I’m interested to see how it might work. They’d have to get over the stigma of the Saturn name. Anyone that’s not a car person would have no idea that the new Saturn would really have nothing to do with the old Saturn, and the cars aren’t warmed over GMs.
I don’t see the point of this exercise.
Renault (mainly) are trying to get a foothold into the NA market.
Well, in terms of dealer network, Renault could use Nissan’s dealer network to help them usher their products (I’ll come to that later). And before anyone says “That won’t work”, Renault-Nissan have done this before in other markets.
Now, if Renault want a brand to have their own footprint in NA, why not buy Volvo from Ford? It’s an established brand, with a good recognition in NA, plus, they already have a working with Volvo, so it won’t be completely unfamiliar to them.
If Renault plan (as I suspect) to rebadge their cars and sell them as Saturns, it won’t work.
As much as people have brand loyalty to the “Saturn” marque, you cannot polish a turd. People will see the unreliability of the Renault cars and start to leave them after a short while. In fact, it wouldn’t surprise me if Nissan has purposely trying to distance themselves from Renault in the NA market….
I can already see the new Renault, er, Saturn commercials featuring Beldar Conehead…
“We come from France!”
I can’t believe that Roger is even contemplating this. Saturn badged Renaults? Probably 2-3 years away unless they have something engineered for the NA market right now -unlikely. Otherwise you have re-badged Nissans that will cannibalize sales at Nissan dealers.
The only hookup that would make a shred of sense now would be an Opel deal and that looks like it may be going away. Saturn, time to stick a fork in it.
if this somehow translates into me getting a Saturn-branded Clio V6, I’m all for it.
Or even a Clio Sport 2.0 Coupe, a very sharp and affordable little car.
This idea sounds a hell of alot better than the Fiat-Chrysler merger. But GM is so dumb they will probably not accept it. One can only hope that this potential “buyer” for Saturn will get the chance to take it over. It sure sounds good to me.
This sounds like a very good deal for GM. It makes sure that Saturn isn’t the entrypoint for GM-free Opel and Renault isn’t really a new player on the American market.
One thing that one almost never hears is that the so-called Saturn dealership network is shrinking as we speak. Here in Wisconsin, the major Saturn franchisee closed four of his six outlets. While these are in smaller cities, it still strikes me as a major hurdle when the fairly large dealership here sits completely empty but with the Saturn name still prominently displaced out front. Not a good advertisement for future success.
“Please, get in your Renault and leave me. Here are ze keys and ze balloons.”
Saturn is dead. Sure, there are still some dealers left. But also a few Studebaker dealers are hanging on.
I wonder if Nissan Renault would get the Spring Hill, TN Saturn plant as part of the deal. Good fit geographically with Nissan NA headquarters and other Nissan plants in central Tennesee.
Maybe the Saturn brand would allow Nissan and/or Renault to experiment with a “plug and play” distribution model separate from the Nissan dealer network. If it fails, Saturn brand and dealers take the hit, not Nissan.
Slapping another brand on a Nissan has been done many times. Nissan Renault already make Samsung brand cars in Korea.
http://en.wikipedia.org/wiki/Renault_Samsung_Motors
Also make the Suzuki Equator.
http://www.suzukiauto.com/equator/
Forget the Saturn name though…Bring back Datsun Baby!!! This would also allow Penske to rebadge Smart Cars as the modern LeCar.