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Monday, April 20, 2009

Oklahoma Firm reaches for Saturn


DETROIT — An Oklahoma City private equity firm has teamed with a group of Saturn dealers in an effort to buy the money-losing brand from General Motors Corp.

The proposal from a group led by Black Oak Partners LLC is among several that GM has received for the brand, GM spokesman Mike Morrissey said.

"We are working with all those groups,” Morrissey said. "It’s too early to speculate as to what the ultimate outcome is going to be.”

Jennifer Threet, a spokeswoman for the Black Oak group, said it delivered a proposal to GM last week and is awaiting a formal meeting.

The group said in a statement Wednesday that it would get vehicles from GM initially, but it expects to sell smaller, fuel-efficient vehicles from global manufacturers.

Sheldon Sandler, managing director of Bel Air Partners, a New Jersey-based firm that helps car dealers find options when they want out of the business, said it’s tough to evaluate Black Oak’s offer without knowing what kind of commitment and resources it would be willing to put into Saturn.

But Sandler said that such a deal would create something new, because an independent company would be telling manufacturers what to make for its dealerships. "It’s upside down from what the traditional distribution process looked like,” Sandler said. "I think it’s exciting.”

In a statement, the Black Oak group said it would form a new Saturn Distribution Co. that would keep a vehicle design function but will not manufacture vehicles.

Designers would help other automakers tailor their products to Saturn’s style and customer needs and be sold in most cases under the Saturn brand, the statement said.

by the associated press

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