The other day I saw a billboard for 2010 models for Saturn, the soon to be defunct GM brand. I thought to myself “Who in the world would buy a Saturn now?” Saturn has always had the reputation of being a risky brand because they make their cars a little bit differently than the competition. My ex-girlfriend Julianne used to drive one. I thought that they were great right up until a driver suddenly decided to stop at a green light in some weird panic and Julie failed to break in time. That wasn’t the Saturn’s fault, but the repair bills were astonishing (and Julie was declared at-fault, and the other driver was unlicensed and uninsured anyway, so she had to foot that bill). It’s hard to imagine that the repair bills are going to get any lighter even if GM is saying that they’ll still service them. That’s the same sort of thing that makes me lukewarm on the prospect of buying an Isuzu (who recently pulled out of the US market).

Anyhow, for those of you that don’t know, Saturn was originally supposed to be bought by Roger Penske but that fell through when they couldn’t line up a manufacturer.

It’s a shame that a solid brand name and an existing distribution network is about to fall by the wayside. Presumably GM will incorporate as many as they can for their other badges, but since Saturn was a distinct enough brand that they’re going to have to worry about market cannibalism and will close more than a few. What’s interesting is that what Penske had in mind was a variation of what I was thinking that a foreign carmaker without an American presence should consider. I was thinking about it back when the dealerships were going to be cut loose and I had a slightly different idea, but it would apply doubly to Saturn and Pontiac and other to-be-discontinued brand names.

My idea was thus: An Indian or Chinese (or whatever) car company should consider buying a discontinued brand name from a US dealership. The most obvious one that came to mind was Geo, which was an import badge anyway (meaning that GM didn’t make Geos, they bought models from Suzuki and other manufacturers and rebranded them). Geos were known for being inexpensive cars, that Indian company (Tata) was known for producing inexpensive cars, so it would be a natural fit. Most people wouldn’t know that the new Geos were not the GM-branded cars of old, but it would at least be instantly recognizable. Then they could let the dealerships that were being cut loose on cannibal grounds (as opposed to profit/loss ones) in on the ground floor.

Penske had a similar idea, except with the less dusty Saturn brand. Get GM for a couple of years and then bring in foreign cars. An article in the New York Times was ambiguous as to whether or not these cars would be rebranded Saturn, though my impression is that they would have been. Saturn is certainly more expensive than buying the Geo brand would have been (if GM had been willing to sell it), but the distribution network in place was a much better idea than my hodge-podge gang of reject dealerships. Plus, Saturn is well-regarded by some while Geo is probably unknown by what would be Tata-Geo’s target demographic (young people). In any event, it looks like neither model is workable.

Of course, all of this is running around the fact that we are dealing with three automobile manufacturers that are unable to compete in the modern marketplace. It’s easier for foreign car companies to come into the US and make cars here profitably than it is for local manufacturers. The Big Three are bogged down in pension obligations and union contracts that soak up funds that could otherwise be directed towards engineering a better car. Maybe the recent re-orgs will work out, but it’s a shame that we can’t start over from scratch and deal on a level playing field with Hyundai and Honda and Toyota cars that are also built here.

And while I’m throwing my (ahem, relatively ignorant) opinions out there, I also wonder if one of the foreign companies that don’t have any existing contracts in the US couldn’t actually make a go at primarily selling through the Internet. I know that in my car search the dealership model is proving decidedly inconvenient. I’ve been contemplating the ramifications of going to a dealership and giving them a “Build a Car” from the dealer’s website, but the logistics leave a lot of room for maneuvering in the low-trust environment of auto sales (though Linus makes it sound like less of a hassle than maybe I fear). Instead, I wonder if there’s room for a business model out there where they can keep “test drive” vehicles at affiliated locations (I’m thinking used car dealerships, rental car agencies, or repair shops). Or make a deal with a rental agency and if someone wants a test drive they can rent the car at a special rate or an hourly rate or something and get a feel for it. But most selling would take place over the Internet. With their dealership agreements, it would be nearly impossible for a current automaker to sign on to such a model, but I think it’s something that one trying to break into the US market should consider.