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Plenty of GM news: Sale of Saturn, management shakeup, Delphi buyout

This morning, The Wall Street Journal (subscription required) reported that General Motors (OTC: GMGMQ) has reached a preliminary deal to sell its Saturn distribution network to Penske Automotive Group. Penske is the second-ranked U.S. dealership group.

The Journal says that Penske will take over the brands, trademarks, service and parts operations, as well as the distribution operations related to the Saturn brand. The report also notes that Penske will make deals with other auto makers (one possibility is Renault SA) to purchase vehicles that will fill out the Saturn portfolio.

In addition, the Journal is reporting that GM has agreed to finance a private-equity firm's buyout of Delphi Corp. Reportedly, GM will provide more than $2.5 billion of the $3.6 billion needed for Platinum Equity to purchase the parts manufacturer.

Finally, the Journal is reporting that GM may shake up its management. CEO Frederick Henderson reportedly theorized that he may change some or all of the company's senior management. Henderson stated, "We have changes ahead," in response to a question about the magnitude of the change, but he would not provide any specifics, noting the need for more time to finalize the changes.

The news is coming fast and furious as far as GM is concerned. Watch for this to continue as there is a lot of work to be done to get the company out of bankruptcy. Let's see what kind of magic can be worked, if any.
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Last updated: November 25, 2009: 12:33 AM

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