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Cars Blog

With Saturn, G.M. Failed a Makeover

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December 4, 2008 9:51 am
By Peter C. T. Elsworth

General Motors has promised Congress that it can recreate itself as a different kind of car company -- smaller, with a more cooperative relationship with its union, and a lineup of fuel-efficient cars to compete with the best of the foreign brands.

A quarter-century ago, G.M. started Project Saturn with the same goals. And it worked, for a time. Saturn owners, including many who traded in their Hondas and Toyotas to own the first models in 1990, became cheerleaders for the division's customer-friendly approach, while the United Automobile Workers union gave up many of its traditional restrictions to help Saturn succeed.

The brand became a media darling, and was featured on the cover of Time. "Can America still compete?" said the headline. "With its new Saturn, G.M. bets the answer is yes."

But Saturn quickly started losing its shine. G.M. executives cut spending, and shoppers flocked to S.U.V.'s. Eventually, many workers resisted the new management style. Now the brand that was once a symbol of G.M.'s future will have a bit part, at most, according to The New York Times.

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