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There has been quite a bit of speculation about the reasoning behind GM's decision to shut down the Saturn project, but here are a few thoughts:

  • The Saturn project was intended as an experiment. It was a trial of concept between Management, Engineering and Labor. The idea was to see if a better project could be produced by allowing all three to have representation at the design meetings, in hopes of creating innovations for the automotive industry.
  • The Saturn manufacturing plant was in Spring Hill, TN. Tennessee is a "right to work" state, meaning that an employee can decide if he/she wants to join a union. There has been some speculation that Obama, a strong supporter of the rights of unions to force their will on companies, mandated that GM close shops in right to work states as part of the GM bailout.
  • Saturn was one of the more profitable, reliable and inexpensive nameplates in the GM product line. I personally find it difficult to believe that a responsible CEO would allow such an entity to be shut down if he/she were truly thinking about the return on investment for his/her investors.
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11y ago
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11y ago

Saturn stopped producing cars on October , 2009. This discontinuation was a result of Penske ending talks with the manufacturer.

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Q: Why did the Saturn car company shut down?
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