The CEO of the struggling automotive giant said Saturn and its dealership network will be phased out, after expressing sadness over the failed negotiation with PAG.
"This is very disappointing news and comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality," GM CEO FritzHenderson said in a written statement. "PAG's announcement explained that their decision was not based on interactions with GM or Saturn retailers."
U.S. & World
PAG had a tentative agreement with another unnamed auto manufacturer to take over the Saturn brand, but the manufacturer's board of directors rejected the deal -- leading PAG to terminate talks with GM over "risks and uncertainties related to the availability of future products," the company said in a statement.
GM, which was expected to sell Saturn to PAG within days, said Saturn owners will still be able to take their cars to GM dealers for service once the Saturn dealerships are closed.
Get more: MSNBC