Penske, GM set to announce deal on Saturn

General Motors is expected to announce later this morning that it has reached a tentative deal with Detroit auto tycoon Roger Penske to buy the Saturn brand and dealer network.

A sale would add to Penske's storied automotive career and cap a historic week for GM, which filed Chapter 11 bankruptcy Monday and announced a tentative deal Tuesday to sell its Hummer brand to Chinese-based Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd. GM also is phasing out or selling its Saab and Pontiac brands.

Penske, a billionaire Detroit booster who oversaw the city's Super Bowl XL preparation, is a racing legend whose career has ranged from building engines as owner of Detroit Diesel Corp. to obtaining exclusive U.S. distribution rights for the Smart minicar.

A sale also would free Saturn from speculation about the brand's future that dealers complain has depressed sales since GM announced it would be either sold or phased out later this year.

"We're pretty excited to get that cloud removed," said Dan Jonuska, a Saturn dealer in Scottsdale, Ariz. "The cloud can go away and park anywhere it wants but right here."

GM would not confirm that a sale is imminent, nor that Penske is the likely buyer. A Penske spokesman did not return calls seeking comment.

"Negotiations are literally going around the clock and we hope to have something to announce soon," Saturn spokesman Steve Janisse said.

It was unclear whether Saturn's leadership team, including General Manager Jill Lajdziak, would be part of the deal.