Updated from 1:58 a.m. EDT
will announce Friday it has reached a preliminary deal to sell its Saturn division to auto dealer Roger Penske, the
Wall Street Journal
reports, citing people familiar with the matter.
GM's deal will allow Penske, who runs
, to take over the brands, trademarks, service and parts operations and distribution operations related to the brand. In addition, Penske will strike deals with various automakers, including GM and
, allowing him to buy vehicles from those auto makers' factories to fill out the Saturn vehicle portfolio, the
Penske will initially buy Saturn vehicles from GM that are already part of the Saturn lineup, but eventually branch out to purchase vehicles from Renault and its Korean
reports. Other automakers could be part of the arrangement.
GM and Penske have a memorandum of understanding signed, and the deal is considered tentative at this point. The price tag on the Saturn deal wasn't immediately available, according to the
Meanwhile, GM's planned sale of its Hummer brand to a little-known Chinese truck maker could be blocked by regulators who haven't approved the deal and are questioning its wisdom.
Sichuan Tengzhong Heavy Industrial Machinery
and GM have given no financial details about the planned purchase of Hummer.
However, any such deal would require Chinese Commerce Ministry approval at the provincial level at least.
Reports in the
Shanghai Securities News
and other state-run newspapers Friday said Sichuan Tengzhong had not yet obtained such an approval. They also raised questions over whether the deal will be allowed to go through, with one report likening Tengzhong's plan to acquire Hummer to a "snake trying to swallow an elephant."
The surprise announcement of the acquisition by Sichuan Tengzhong, a maker of heavy industrial vehicles such as cement mixers, has raised questions about the privately owned company, which has disclosed scant information about its ownership or finances.
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