BUSINESS: THE AUTO INDUSTRY

Saturn was Supposed To Save GM

Instead, GM crushed Saturn. Here's how.

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  • Posted By: reswob10 @ 04/27/2009 12:20:35 PM

    I just want to say, since I graduated college in 1993, I've had only Saturns. I've gotten a total of 400,000 miles from both, 190,000 from the first (1993 SL) and 210,000 from the second (1996 SL) and only spent about $10,000 total in maintenance. I'm still driving the second 150 miles a day and getting 35 - 40 MPG. Great car as long as it's not a 2000 or higher...

    Saturn was, at one time a great car and a great company... division of GM. I'm sorry to see the slide.

  • Posted By: rabagley @ 04/26/2009 1:28:34 PM

    It's fairly easy to explain why Saturn failed: low energy taxes. Why do (did) American consumers favor huge vehicles with horrible mileage? Why do europeans have so many fuel-efficient choices in their car market? Why do Americans continue to own homes 30-80 miles away from where they work? Why do European cities look so different? Why is public transit in Europe clean, convenient, and usable? Why are 90% of American cities so hostile to pedestrian, bicycle, and scooter/motorcycle traffic? Why are our current plans to increase CAFE mileage doomed to fail? Why are Americans in serious trouble once fuel prices head back up?

    One reason: a history of corrupt energy policy stretching back 30 to 50 years. Want to fix it? Call your congresscritters and ask for a 50% gas tax to be phased in 5%/year over the next ten years, with the proceeds going to public transit infrastructure. You think this year is bad, if we do nothing, just wait.

  • Posted By: tech010101x @ 04/26/2009 11:58:08 AM

    The concept of "Buy American" is ironically anti-American at its core. If, as an American, you hold dear the idea of limited government role for healthy private industry for a strong and healthy USA, then the idea of having artificial constraints like trade barriers and "Buy American" are the antithesis to those fundamental American core values. The only way "American made" would enter the consumer's decision making is because the product is somehow inferior - either price, quality, features, or something that makes it less than a competitor. Therefore, if a "buy American" factor kicks in, it is to prop up a non-competitive product (at least for that particular consumer). If enough consumers do this, then as a group, they are subsidizing the non-competitiveness of that American made product. Kick in enough of that... between government subsidies, tax breaks, and consumer forgiveness, this American made product and the company behind it is getting inducement to do less... not more - overall unhealthy for both the company and ultimately America.

    Americans bought way too many GM's, Ford, and Chrysler cars over the years - giving these companies a very wrong picture over exactly how well their products really competed in the marketplace. Look at the overseas marketshare's of GM, Ford and Chrysler (yes there are protectionist trade policy issues, but still...) Now take away the fact that "buy American" isn't really true anyways anymore... that Chrysler is probably Canadian and the rest are made in some combination of U.S., Canada, Mexico, and many other places. So now, not only are the products inferior, they're not even American, or no more so than many Honda's, Toyota's, BMW's, or Mercedes. The companies themselves are stock corporations with ownership that is completely spread throughout the world. The companies themselves are complacent... after all, Americans have been buying all sorts of truly awful cars coming from the Detroit automakers for years, why do they have to work that hard? So now they are "too big to fail" and we toss in billions in the hope that they will survive. But ultimately, if you believe in limited government and private enterprise, the weak must re-invent or perish. At this point, the Detroit automakers don't know how to get better. Leave Ford to be the last one standing... it will easily soak up the remaining market for mediocre products made by the historically "American" car company and focus on a new crop of innovative companies like Tesla. Focus on reducing the barriers to making a car company, like limited factory runs on out-sourced manufacturing plants so that Saturn dealers can have a contracted run made to their spec, rather than GM bosses dictating it. Let companies fail - build a system where failure doesn't mean the failure of the U.S. industry. This, in many ways, is the failure of big business - too big to fail means it isn't healthy for th

  • Posted By: ScottieDogFLA @ 04/14/2009 1:01:13 PM

    How Ironic that the divisiion that was supposed to "save GM" by manufacturing quality small cars in a manner almost like that of the Japanese companies doesn't even make a small car in the US anymore; GM and it's other divisions helped morph this division into another Oldsmobile- why make "Outlook" when you can buy a Chevy Traverse or Buick Enclave? Why a Sky when it's just a more expensive Pontiac Solstice? It will be sad to see Saturn go but it would be hard to find any Saturn "loyalists" buy from other GM brands.

  • Posted By: dictor @ 04/11/2009 1:07:02 PM

    I worked at GM Research at the time Roger Smith introduced Saturn - the wholly-different division that was to create cars that would leapfrog past the Honda Accord, the target at the time. In later presentations by senior Saturn management - preceding the rollout of the first vehicle - we were given updates on how Saturn had almost caught up with Honda on transmission, styling, etc. Big difference between leapfrogging past the competition and almost catching up with them. Smith's vision for GM may have been solid. But as this article summarizes nicely, Saturn was brought to ruin through the joint efforts of management and the union. An interesting exercise for the Newsweek research staff would be to review headlines from 25 years ago and see how they mesh with current ones. Most all of what was wrong with GM then is still wrong today. A company so insistent on destroying itself should not be receiving tax dollars for life support.

  • Posted By: dictor @ 04/11/2009 1:05:50 PM

    I worked at GM Research at the time Roger Smith introduced Saturn - the wholly-different division that was to create cars that would leapfrog past the Honda Accord, the target at the time. In later presentations by senior Saturn management - preceding the rollout of the first vehicle - we were given updates on how Saturn had almost caught up with Honda on transmission, styling, etc. Big difference between leapfrogging past the competition and almost catching up with them. Smith's vision for GM may have been solid. But as this article summarizes nicely, Saturn was brought to ruin through the joint efforts of management and the union. An interesting exercise for the Newsweek research staff would be to review headlines from 25 years ago and see how they mesh with current ones. Most all of what was wrong with GM then is still wrong today. A company so insistent on destroying itself should not be receiving tax dollars for life support.

  • Posted By: saturn97 @ 04/10/2009 11:06:56 PM

    I have worked for Saturn Retailer for 11 yrs. I have seen the slow destruction of the Saturn brand. We now look just like all the other GM cars. With one exception we are still customer oriented. Our customers are loyal and devastated by what Gm did to them and us. Their loyalty is what a car company strives for but GM decided that we were not worth saving and that is their loss. We had to take on their shotty workmanship and values and that was not what we were about. Gm deserves to be restructured they aren't worthy of customer retention.

  • Posted By: mwarneridx @ 04/10/2009 9:34:33 PM

    We had a 1992 Saturn SL -- it was the first new car we had ever owned and basically the first car we could ever afford. It was clearly on the austere side -- but it was a solid car and we never had a moment's difficulty with it. We probably would have kept it forever if not for the arrival of children and the need for minivan-style space. We looked at Saturns for our subsequent purchases, but the price went up without any kind of commensurate increase in quality. We've moved to Toyotas and haven't looked back.

  • Posted By: johnsjmp @ 04/10/2009 1:49:06 PM

    In the end, bumbling, inept management, a board that was not up to the task and arrogant UAW leaders are to blame for GM's demise and Saturn's failure of promise.
    I am pro union but I am increasingly frustrated when I see that the UAW's response to competitive threats, higher costs with lower quality and a possible bankruptcy is staggeringly less than creative. They are predictable. As is the GM management team.
    It is ironic that the unions and the GOP have been suffering from the same disease; lack of new ideas ??? a lack of new ideas for leadership and collaboration. And it is even more ironic that the UAW leaders and GM's management have one negative thing in common: they cannot exist in white space.
    I like white space. I like the fact that with tension, confusion, and conflict comes opportunity.
    You have one last chance. Be creative. Don't blow it.

  • Posted By: johnsjmp @ 04/10/2009 1:35:34 PM

    Bad management AND the UAW are BOTH to blame for GM's demise. I am pro-union but not when it becomes a huge part of the problem. There is a ironic similarity: Neither the unions or the GOP have any new ideas on how to make the American economy more robust that will create more jobs. Protectionism is as lame as cutting taxes when it comes to new thinking.

  • Posted By: rousch15@hotmail.com @ 04/10/2009 12:22:37 PM

    Saturns among the best cars my family ever owned. They've always been safe and reliable. The only cars which were better were two Chevys and a 2000 Plymouth.

  • Posted By: ThePrairiePrankster @ 04/10/2009 12:17:59 PM

    I found Saturns to be very disappointing. I have purchased 5 new cars since 1988. In the 90's and 00's I looked at Saturn's offerings and found them to be less than I hoped. The quality fit and finish I was expecting was not there. The lack of development of the brand was puzzling too. My sense is that the brand became a boat anchor rather than an opportunity to bring a new level of quality autos to the American consumer. Maybe Tata Motors will buy the Saturn brand, a factory or 2, and their dealer network and bring more competition and jobs to the American market.

  • Posted By: gabraira @ 04/10/2009 3:36:55 AM

    I have sold cars for dealerships for over 15 years and I can tell you that I have sold every kind of car you can find on any lot. I have been in and out of them and drove them and sold them and took them in trade by the thousnads over the years. When ever I got into a saturn I would always be amazed at how cheap and under developed the car looks and feels and sounds compared to other cars, especially the Japanese cars Saturn was supposed to be better than. I remember the hoopla days of Saturn being touted as the magic answer to Japan's cars. As soon as it came out and I got into one and drove it and looked closely at the interior, etc. I shook my head and did'nt know if I should laugh or cry for G.M. and for America. I was angry to see the pride of G.M. to be another b.s. story. I sold Toyota for years, and Honda. There is no fair comparison. Sure, your Saturn may last for hundreds of thousands of miles and the plastic body is nice, but overall, it is a utilitarian, plasticy, cheap feeling auto in the un-grand G.M. style. Why can't America build a vehicle that feels and sounds and touches one's heart like a Toyota? Why? Why? It would be so great. It's the unions and the overpaid executives that get all the money for themselves and the workers and there isn't enough left to invest in the best possible car product. Stupid is as stupid does.

  • Posted By: dhyde153 @ 04/10/2009 1:14:16 AM

    I still have my 1998 SW1 and will soon pass the 200,000 mark. In 11 years (lifetime 31.6 mpg), it has only let me down twice. While I'm not happy that the driver's seatback has worn out and the rear wiper motor has died, I'm confident that I'll be able to push it to 300K. The plastic skin continues to look great, while my mom's 1994 Prizm is eaten alive with rust although it has been garage-kept and has gone only one-third as far.

    When I went to an out-of-town dealer for an emergency repair 3 years ago, they just pulled up my VIN on their system, treated me like family, and had me on my way in a couple of hours (on a Saturday afternoon)! However, when I recently went to another dealer for a new battery, they no longer had that level of data integration (the innovative computer system had become too expensive). I'm so glad that at my home dealership my loyalty is still valued and the ownership experience remains second to none. There just isn't another boutique brand that can compare.

    GM still has excellent product, and I'd very much like to buy another Saturn when I return to steady employment. However, I have a little reticence about leaving behind the soul of Spring Hill in favor of a Belgian Opel. As Saturn management recharts its future and redefines its relationship with Global GM, I hope they don't totally lose sight of what made it so special in the first place.

  • Posted By: ErnestPayne @ 04/09/2009 11:42:35 PM

    Decades of dismal management and decades of dismal quality products sank GM. It was not the workers that destroyed the company.

  • Posted By: ErnestPayne @ 04/09/2009 11:41:09 PM

    GM has had dismal management and dismal quality for decades. IIt was these problems, not the UAW that sank GM.

  • Posted By: ronaldoVT @ 04/09/2009 4:37:09 PM

    Hmmm. Ther events and experiences related in this story seem applicable to the public schools - teachers' Union obstructionism to charter and voucher schools throughout this country. That the Democrats chose to discontinue the successful voucher school program in Washington DC does not augur well for the future of GM under its "leadership".

  • Posted By: Betty Anne @ 04/09/2009 3:51:39 PM

    It's unfortunate that GM is killing one of their best and most dependable vehicles. My husband and I own a Saturn now, and alongside our Oldsmobile (another car that got the axe), they have been faithful, hardworking cars. My husband was furious that GM is cutting Saturn - and he's vowed to not buy another American car. His eyes are on Japanese cars now. My own attention is turning to bicycles until the automotive industry can pull their heads out of their collective backsides and produce good, dependable vehicles that are fuel efficient and have a minimum impact on the environment. The electric cars (Roadster and Model S) by Tesla Motors are a strong step in the right direction - I'm waiting to see if the other companies will follow suit.

  • Posted By: davidwayneosedach @ 04/09/2009 2:41:45 PM

    Unfortunately GM is struggling mightily before every thing goes down the tubes. Saturn is not at fault but in the end nothing associated with GM will be left standing.

  • Posted By: samewok @ 04/09/2009 12:18:32 PM

    GM has taken anything that was good for saturn and given it to chev.!

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