GM Reaches Saturn Sale Agreement With Penske Says WSJ

Detroit Jun 5, 2009; Esha Dey writing for Reuters reported that General Motors Corp (GM.N) (GMGMQ.PK) has reached a preliminary deal to sell its Saturn distribution network to the No. 2 U.S. dealership group Penske Automotive Group (PAG.N), the Wall Street Journal said, citing people familiar with the matter.

GM and Penske have signed a memorandum of understanding, the paper said, adding that deal value was not immediately available.

The deal will be announced on Friday, the Journal said.

Penske would also be in deals with other auto makers, including Renault SA, to buy vehicles to fill out the Saturn vehicle portfolio, the paper said.

GM and Penske could not immediately be reached by Reuters for comments outside regular hours.

Editing for Reuters by David Cowell