I am not surprised by Saturn's proposal to establish a retail corporation. A few years ago, while working for one of the major Japanese automakers, I developed this entire model. The reason was simple: profit. There is enormous potential profit, but not from the sale of vehicles.
I researched many factors that would affect the creation and ongoing operations. Numerous financial experts indicated that growth in stock value would be explosive for the first of those companies that had the backing of a major manufacturer.
Although the Ford Retail Network has never said this is part of its plan, Ford has access to the same analysis that I used. Now it seems that Saturn could beat Ford to an initial public offering.
The establishment of the Saturn retail corporation is likely to boost profits and retail sales, but the big money will come from Wall Street. My advice to dealers is: Take the stock and ride the wave of increasing share value. You will make more money than is possible in operating a retail dealership.
Fountain Consulting Inc.