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Breaking: Penske to Close Canadian Saturn Dealers

Future owner of brand would eliminate Canadian operations once sale with GM goes through

 |  Aug 31 2009, 9:27 AM

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According to a recent report on CBC Radio’s French website Radio Canada, the Penske Automotive Group plans to close all the Saturn dealers in Canada once its deal to buy the brand from General Motors is complete.

At one time there were 60 Saturn dealers in Canada, but half of those dropped out of the business during this turbulent year as General Motors filed for bankruptcy protection. The business case for keeping just 30 dealers in such a vast country as Canada apparently makes for a poor business decision.

We can also speculate on additional concerns, including the fact that if Penske does plan to rebadge Renault vehicles, as has widely been speculated, then there would be twice as much red tape involved by having to go through not just U.S., but also Canadian bureaucratic regulation procedures.

The closure of Saturn in Canada is expected to effect 2,000 people.

[Source: Autoblog via Radio Canada]