The move is part of the viability plan submitted by GM to the federal government to fulfill its commitment to rebuild the company. In effect, Penske will own the Saturn brand together with some other assets of Saturn. GM will still produce units like the Aura, Vue, and Outlook based on their contracts.

Penske is considered the second largest dealer group in the U.S overseeing 156 franchises nationwide and about 148 in other countries.

The specific plans for the Saturn brand have not been revealed by the Penske Automotive Group. The founder of the firm though plans to retain the general manager of Saturn and retire its co-president.

An insider from Penske revealed that they are in negotiations with several automakers worldwide and is considering beefing up the line up of the Saturn brand. Previous reports suggest that Penske is planning to import Renault-Samsung units to be marketed by the Saturn dealerships. They are particularly looking at the QM5 SUV.

A two-month diligence period is in effect over the deal between GM Autos and Penske. The companies will also have to abide by the terms and requirements of the bankruptcy case of GM.

The actual sale is set to materialize by the third quarter of 2009. The terms of the deal will be disclosed after.