The task force, which includes Jill Lajdziak, four Saturn dealers and former General Motors Acceptance Corp. CFO Sanjeev Khatri, is drafting a feasibility study asked by Saturn dealers. It is now looking to determine whether a spin-off will be able to procure enough resources to allow the survival of the 400 Saturn dealers.
The spin-off will allow manufacturers other than GM to build vehicles in under-used GM plants and also provide them with a ready-made distribution network across the US. Even if the pact with GM is valid until 2011, Saturn hopes on attracting other manufacturers until that time.
Still, Girsky says it is yet too early to seek potential investors. He added that GM will most likely require Saturn dealers to release it legally from some of the costs that come with closing of the brand. This is because US franchise law can ask the manufacturer to buy back inventory and compensate dealers for losses caused by scrapping the brand.
The task force will conclude its work sometimes in late April and it will probably be then when we will have a more detailed look of the spin-off. Until that time, GM has to get passed the March 31st government deadline.