GM Forced to Kill Saturn

Even though Saturn commercials were still running regularly in recent weeks, the company was on the brink of dying - or of being saved by a deal between Penske and General Motors. As it turns out, just when everyone seemed to think that Saturn would be saved, the auto manufacturer that agreed to produce the vehicles for Penske backed out at the last moment. Now, with no remaining options, GM must shut down Saturn.

Fortunately, at this point, the death of the Saturn brand will not immediately affect GM's workforce. But there will certainly be some destructive shock waves moving through the numerous Saturn dealerships around the country. Penske appears interested in perhaps trying to work out an arrangement with another manufacturer to produce the vehicles, but it seems at this point that all is likely lost.

In the years to come, we'll likely see a streamlining of the automotive industry, especially among U.S. manufacturers. Within a single manufacturer, it really doesn't make any sense to have numerous brands, all competing with one another and none ever really having a chance to become a market leader.

Toyota has Lexus as its high-end brand and that is well-known. No one is ever going to mistake a Toyota for a Lexus. But that type of visual and quality differentiation is simply not present in U.S. auto brands. At least, not yet.