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Saturn, Saab, Hummer May Face Extinction
01:01 p.m. EDT, February 04, 2009

In an article for Automotive News, Jamie Lareau reports on General Motors' failure to address the fate of its unsuccessful brands just two weeks before the company must present a detailed plan to the Obama administration illustrating its viability.

At the present time, GM would appear to have no chance to move Saturn, Saab, and Hummer to a profitable position with a partner or to sell them outright, raising the real chance that the brands will simply be shut down. In that event, dealer lawsuits would undoubtedly follow.

GM must present its plan to the U.S. Department of the Treasury by February 17, demonstrating steps to achieve long-term profitability and a projection for a positive net cash flow. The government will accept or reject the plan by March 31. If rejected, GM could be required to immediately repay its $13.4 billion federal loan.

GM executives told Congress on December 2 that it would direct the bulk of its resources at shoring up its "core brands," namely Chevrolet, Cadillac, Buick, and GMC. Pontiac will be crafted into a niche brand featuring one or two products.

Over the course of the last year, Saturn, Saab, and Hummer have all been offered for sale or partnership arrangements, but no takers were forthcoming. Hummer, in particular, has become an unattractive brand in light of the new emphasis on fuel-economy. With the deadline nearing and no more attractive alternatives, it would seem likely that these brands will simply disappear.


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