Auto Industry Update

GM has arranged a sale of Hummer to a Chinese firm, and sold the Saturn brand to the Penske auto dealer group.

This actually bodes well for Saturn, because former race car driver Roger Penske is a real car guy.

He doesn't get the manufacturing facilities or design capabilities, though GM will keep 3 models rolling out for the next 2 years, so he will probably go with foreign manufacturers to supply the dealership network, most likely Renault.

If he brings in some of the high MPG diesels, he will have a real winner.

The problem with Saturn is that GM left the brand stagnant for nearly a decade.

In addition to dumping a number of brands, GM is shutting down medium duty truck production, so it's completely getting out of the business of making commercial trucks that are the basis for things like dump trucks and cement mixers.

Finally, the Supreme Court placed a stay on Chrysler's sale to Fiat, pending resolution of disputes with bond holder/vulture speculators.

Fiat has said that this won't queer the deal.....Yet.