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Saturn Corporation
The Saturn Corporation, also known as Saturn LLC, was an American automobile manufacturer, a registered trademark established on January 7, 1985, as a subsidiary of General Motors. The company was an attempt by GM to compete directly with Japanese imports and transplants, initially in the American compact car market. The company was known for its "no-haggle" sales technique.
Saturn marketed itself as a "different kind of car company" and operated quasi-independently from its parent company,—comprehensively introducing a new car, dealer network, pricing structure, workforce and independently managed manufacturing plant in Spring Hill, Tennessee. The first cars themselves launched five years after the company's inception, and they advanced GM's spaceframe construction—manifesting Saturn's market proposition with their dent-resistant polymer exterior panels.
Over time, as Saturn drained resources from GM's extensive brand network, the brand would be gradually re-integrated into the GM corporate hierarchy, losing its semi-independent nature and beginning to work on models that increasingly compromised the independence of the brand, first with mild use of shared GM products and platforms in their lineup, but later with a myriad of "parts-bin" cars built mostly or entirely from pre-existing GM equipment rather than independently-engineered material. As GM struggled in the onset of the 2008 economic recession, the parent company further curtailed Saturn's development budgets, leaving Saturn to almost fully badge engineer products from other divisions, notably a series of federalized models from Opel. With the gradual shift in internal practices and external outcomes, Saturn lost its unique selling proposition, and the market lost interest. Annual sales achieved their highest level in 1994, with 286,003 vehicles marketed.
Following a failed attempt by Penske Automotive to acquire Saturn from GM in September 2009, Saturn ended production in October 2009, ended outstanding franchises in October 2010, and ceased operations 25 years after it began.
Alex C. Mair began discussions of a "revolutionary new" small car project, codenamed Saturn, in June 1982, soon after the GM J platform was introduced internationally. In November 1983, the Saturn idea was publicized by General Motors' Chairman Roger B. Smith and GM's President F. James McDonald. Twelve months later, the first Saturn demonstration vehicle was revealed. On January 7, 1985, the Saturn Corporation was officially founded. Citing full disclosure, Saturn was founded as a private, employee-owned company, by former GM leadership. They remained private until GM bought them out, and effectively "rewrote" company history.
In the mid-1980s, GM released the Saturn Concept Car. The car, which resembled the first Saturn SL, was not originally meant to start up a brand; however, GM planned to release the Saturn car under one of its brands, which, at the time, were Chevrolet, Pontiac, Oldsmobile, Buick, Cadillac, and GMC. In 1985, GM changed their plan and founded Saturn as its own brand, with its first cars being the Saturn SC and Saturn SL. Production of both Saturn vehicles started in 1990 as early 1991 model year vehicles. The Saturn SW was later added for 1993. GM had plans for a sedan, a coupe, a convertible, a wagon, and even a sport utility vehicle; however, Saturn's first sport utility vehicle, the Vue, did not appear until the 2002 model year and Saturn's first convertible, the Sky, did not appear until the 2006 model year.
On July 30, 1990, the first Saturn was built, a red 1991 model-year Saturn SL2. The first Saturn dealership opened in Memphis, Tennessee. Saturn Corporation was launched as a "different kind of car company", and Saturn even had its own unique car models (although later models shared platforms with other GM vehicles to be more cost effective in the market), and their own dealership network that was separate from the rest of GM.
Results at Saturn were more doubtful than positive. According to The Wall Street Journal, the project was too ambitious, as "everything at Saturn is new: the car, the plant, the workforce, the dealer network and the manufacturing process. Not even Toyota, a highly successful and experienced automaker, tackles more than two new items on any single project." While Saturn cars proved popular and successful in forming emotional connections with buyers, actual sales never met the optimistic projected targets, in part because of the early 1990s recession. It also proved cannibalistic, as 41% of Saturn buyers already owned a GM car. Its separation from the rest of its GM parent, plus the fact that it drained $5 billion from other car projects, stirred discontent within GM's other divisions. Also, Saturn opened at considerably higher cost than the Japanese transplants (factories that Japanese automakers established in the United States).
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Saturn Corporation
The Saturn Corporation, also known as Saturn LLC, was an American automobile manufacturer, a registered trademark established on January 7, 1985, as a subsidiary of General Motors. The company was an attempt by GM to compete directly with Japanese imports and transplants, initially in the American compact car market. The company was known for its "no-haggle" sales technique.
Saturn marketed itself as a "different kind of car company" and operated quasi-independently from its parent company,—comprehensively introducing a new car, dealer network, pricing structure, workforce and independently managed manufacturing plant in Spring Hill, Tennessee. The first cars themselves launched five years after the company's inception, and they advanced GM's spaceframe construction—manifesting Saturn's market proposition with their dent-resistant polymer exterior panels.
Over time, as Saturn drained resources from GM's extensive brand network, the brand would be gradually re-integrated into the GM corporate hierarchy, losing its semi-independent nature and beginning to work on models that increasingly compromised the independence of the brand, first with mild use of shared GM products and platforms in their lineup, but later with a myriad of "parts-bin" cars built mostly or entirely from pre-existing GM equipment rather than independently-engineered material. As GM struggled in the onset of the 2008 economic recession, the parent company further curtailed Saturn's development budgets, leaving Saturn to almost fully badge engineer products from other divisions, notably a series of federalized models from Opel. With the gradual shift in internal practices and external outcomes, Saturn lost its unique selling proposition, and the market lost interest. Annual sales achieved their highest level in 1994, with 286,003 vehicles marketed.
Following a failed attempt by Penske Automotive to acquire Saturn from GM in September 2009, Saturn ended production in October 2009, ended outstanding franchises in October 2010, and ceased operations 25 years after it began.
Alex C. Mair began discussions of a "revolutionary new" small car project, codenamed Saturn, in June 1982, soon after the GM J platform was introduced internationally. In November 1983, the Saturn idea was publicized by General Motors' Chairman Roger B. Smith and GM's President F. James McDonald. Twelve months later, the first Saturn demonstration vehicle was revealed. On January 7, 1985, the Saturn Corporation was officially founded. Citing full disclosure, Saturn was founded as a private, employee-owned company, by former GM leadership. They remained private until GM bought them out, and effectively "rewrote" company history.
In the mid-1980s, GM released the Saturn Concept Car. The car, which resembled the first Saturn SL, was not originally meant to start up a brand; however, GM planned to release the Saturn car under one of its brands, which, at the time, were Chevrolet, Pontiac, Oldsmobile, Buick, Cadillac, and GMC. In 1985, GM changed their plan and founded Saturn as its own brand, with its first cars being the Saturn SC and Saturn SL. Production of both Saturn vehicles started in 1990 as early 1991 model year vehicles. The Saturn SW was later added for 1993. GM had plans for a sedan, a coupe, a convertible, a wagon, and even a sport utility vehicle; however, Saturn's first sport utility vehicle, the Vue, did not appear until the 2002 model year and Saturn's first convertible, the Sky, did not appear until the 2006 model year.
On July 30, 1990, the first Saturn was built, a red 1991 model-year Saturn SL2. The first Saturn dealership opened in Memphis, Tennessee. Saturn Corporation was launched as a "different kind of car company", and Saturn even had its own unique car models (although later models shared platforms with other GM vehicles to be more cost effective in the market), and their own dealership network that was separate from the rest of GM.
Results at Saturn were more doubtful than positive. According to The Wall Street Journal, the project was too ambitious, as "everything at Saturn is new: the car, the plant, the workforce, the dealer network and the manufacturing process. Not even Toyota, a highly successful and experienced automaker, tackles more than two new items on any single project." While Saturn cars proved popular and successful in forming emotional connections with buyers, actual sales never met the optimistic projected targets, in part because of the early 1990s recession. It also proved cannibalistic, as 41% of Saturn buyers already owned a GM car. Its separation from the rest of its GM parent, plus the fact that it drained $5 billion from other car projects, stirred discontent within GM's other divisions. Also, Saturn opened at considerably higher cost than the Japanese transplants (factories that Japanese automakers established in the United States).
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