Despite Positive Image, Saturn Brand Appears Doomed

In most cases when a respected brand is struggling, the parent company is able to make needed changes which helps to revive that brand, often to its former glory. Sometimes a trusted brand loses its original appeal, requiring the owner to make the necessary changes to brighten up the brand, restoring it to the lofty position it once held.

Saturn was one of those brands which received accolades in its early days. Founded in 1985 as a separate, but wholly owned car company belonging to General Motors, the brand's first line of cars – the S-Series – quickly became a fan favorite when they rolled off of a Tennessee auto line for the 1990 model year. Owners were crazy about their cars, gathering together for company sponsored meet ups which helped to propel the brand. Suddenly, GM had a good alternative to the small cars from Toyota and Honda which were gobbling up market share.

But, GM eventually abandoned the idea of Saturn operating separately from the automaker and eventually folded the company into its North American operation. Soon, the independent car company exchanged its unique appeal for a more blended corporate look, a transition that also allowed the brand to sell many more models and expand its base. For awhile, the new Saturn image bolstered the brand, giving the quirky car company a new lease on life.

When GM decided to shut down its aged Oldsmobile brand in 2003, some analysts were shocked that GM did not shut down Saturn instead. Reasoning that the longevity of the Oldsmobile moniker gave it a special strength, these same critics though GM was making a huge mistake. Instead, GM which was finding itself managing too many brands, decided to remove Oldsmobile given the unique dealer network that had made Saturn famous.

Saturn was the first car company to introduce “no haggle” pricing, a move which also removed high pitched pressure from sales people, the bane of the automotive industry. Customers loved this fresh approach.

Retiring GM executive, Bob Lutz, recently shared the bad news about Saturn: GM would most likely not be in a position to restore the brand. Given the automaker's dire financial condition, the funds and the energy to keep Saturn going simply doesn't exist. Instead, GM will most likely emerge from it currents predicament as a smaller, leaner company with few factories, workers, and certainly fewer brands.

In addition to dissolving Saturn, GM will likely dissolve Hummer and sell off or dissolve Saab. Cadillac, Buick, GMC and Chevrolet would emerge as the primary brands for the automaker while Pontiac would be kept as a niche brand featuring one or two models.

For Saturn owners, cars will be serviced by GM's other brands, but the originality of the nameplate will be gone, much in the same way that GM no longer has Oldsmobile in the fold.