China carmaker may buy Saturn brand from GM

The last hope to stop General Motors Corp.'s wounded Saturn brand from falling out of the solar system appears to rest with some unknown automaker building cars for the dealers to sell.

GM said in its restructuring plan presented to the U.S. government Tuesday that it will only keep Saturn running through 2011, but it's open to the possibility of spinning off the money-losing brand to retailers or investors. It's one of many tough steps the Detroit automaker says are necessary as it seeks a total of $30 billion to ride out the worst sales slump in 26 years.

Chinese and Indian automakers, which have made noise about entering the U.S. market, would be the most likely suppliers, but GM says it hasn't had any discussions with them, and Indian automakers either expressed no interest or wouldn't comment.

Saturn's dealers, with laid-back salesmen and no-haggle pricing, often match luxury brands' scores in independent customer satisfaction surveys. Their locations could be a ready retail network for a foreign automaker to come to the U.S.

"The goal -- from a product perspective -- would be to find future vehicles that match the Saturn Brand: fuel-efficient, safe, reliable and affordable," Saturn General Manager Jill Lajdziak wrote in a message to customers this week. "From a retailing perspective, we would build on our core strength of unmatched customer service. The same hassle-free experience that is a hallmark of the brand could be taken to even higher levels."

Carl F. Galeana, who owns two Saturn dealerships in Michigan, said he would welcome a buyer from China or India, as it would keep the company going and bring innovation to the product line.

"It's very possible," he said. "It gives a footprint for an automaker to come into this country on the cheap and have a good distribution network."

Calls were not returned by BYD, a Shenzhen, China, company that has touted goals to bring its electric and hybrid cars to the U.S.

GM started Saturn in 1990 as a small-car answer to Japanese automakers and billed it as a "different kind of car company." Its new factory in Spring Hill, Tenn., had more flexible work rules than traditional GM plants and more autonomy for those who built the cars, known for their plastic body panels.

GM also has said it is reviewing the fate of its Saab and Hummer brands. Swedish-based Saab went into court protection from creditors Friday so the unit can be spun off or sold by its struggling U.S. parent.