Saturn dealer plans to convert local dealerships

Jay Cimino doesn’t like losing.

So he plans to turn what appears to be a defeat for Saturn dealers into a victory.

Cimino, president and CEO of Phil Long Dealerships, said Wednesday that his privately owned Colorado Springs-based auto group will sell its Saturn store in Scottsdale, Ariz., to another franchise dealer and convert the remaining three it owns in Colorado into “no hassle, half-price” stores. The company closed a fifth Saturn dealership in Denver earlier this year.

General Motors Co. announced two weeks ago that it would shut down the Saturn division after negotiations to sell it to Penske Automotive Group failed, leaving 371 Saturn dealers in the lurch.

GM launched the Saturn division in 1993 to attract younger buyers to its small, contemporary designs to better compete with import manufacturers.

But now, Saturn of Denver in Littleton, Saturn of Colorado Springs in Motor City and Saturn of Chapel Hills in the Chapel Hills Auto Mall are becoming used-car dealerships that will retain Saturn’s “no hassle” sales approach.

They will sell only year-old, current model and signature series vehicles at half the Manufacturer’s Suggested Retail Price and offer new-car financing rates and 100,000-mile warranties.

Signature series vehicles have fewer than 15,000 miles and have been used as manufacturer vehicles, rental cars or executive vehicles. Cimino said his auto group will buy the newer models in large quantities to reduce the cost to buyers and spread the vehicles across the three stores.

The stores will be branded with the company’s trademark “My,” a philosophy that emphasizes customer service, and will keep the Saturn name until Oct. 31, 2010, when dealers’ franchise contracts with GM end.

Cimino said one of his goals is to retain the nearly 200 employees who work for Phil Long Saturn dealerships.
Production on 2010 Saturns ceased after auto racer Roger Penske did not find a manufacturer and terminated the tentative deal he had struck with GM in June to buy the Saturn brand.

Cimino said he has 300 to 400 new and signature series Saturns at his four stores and is offering them at bargain rates. A loaded 2009 Outlook, for example, with an MSRP of $43,000 is priced at $22,900, he said.

And Saturn owners shouldn’t worry, Cimino said: The manufacturer’s warranties will continue to be honored and parts will be available for repair work or maintenance.