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SaturnSaturn Corporation, established by General Motors Corporation on January 7, 1985 as a wholly-owned subsidiary, is a former manufacturer, and now brand of automobiles marketed in the United States and Canada. GM began manufacturing Saturn automobiles in 1990, largely in response to the success of Japanese small-car imports in the United States.
Its motto was "A different kind of company, a different kind of car". Not only would it copy Japanese car style, it would try to copy Japanese management style: workers would have more control and involvement in the plant, the UAW agreed to lay off the Saturn division, and in general things were 'done differently' than they had been at GM, drawing from experiences gained through its NUMMI and CAMI Automotive joint ventures.
Saturn values were communicated through finely crafted image advertising created by a leading ad agency of the times, Hal Riney. Saturn's narrow focus on a high quality small car and graceful customer service found a perfect match in Riney's folksy signature style.
Saturn carefully developed an organization culture which it passed along to its independent network of retail franchisees. Saturn employees spoke a carefully selected language meant to separate the "new world" from the "old world." This new world was steeped in the best customer service practices learned from travel and hospitality as well as consumer retail industries, not necessarily the traditional car business. If you owned a Saturn franchise, you were a "Retailer," not a dealer. And you planned how to serve a non-competing geographic area, "Market Area," with "Retail Facilities," not dealerships. Saturn inspired a cult following with annual 'meetings' in Tennessee of Saturn owners, as well a day-to-day special events in retail settings. However, the division never made a profit and by the 2000s was a several billion dollar loss for General Motors, which due to its massive financial problems closed the 'experiment' and folded Saturn back into its traditional corporate landscape.
General Motors even choose west-coast Saturn retailers to sell and service the short-lived and highly politicized electric car, the EV1, in the mid 1990's. A history of the EV1 can be seen in the documentary Who Killed the Electric Car?.
Saturn's headquarters, retail employee training facility and primary manufacturing facility were originally located in Spring Hill, Tennessee. The facility was chosen in 1985, after a highly publicized nationwide search for a site; the impact of bringing a major industrial development to a rural American community was the subject of architectural historian Joe Sherman's book, "In the Rings of Saturn."
Saturn was originally established as a fully-owned, but independently administered subsidiary of General Motors, with GM executive Bill Hoglund at its helm. It was hoped that lessons learned from Saturn would trickle down to the rest of General Motors to make them more competitive against foreign automakers and improve labor relations. Due to severe losses at GM, and a failure of the company to capitalize on its initial momentum by not redesigning its vehicles fast enough nor expanding its range, it was decided to integrate the rest of the company in to the GM infrastructure in 2003, with Bob Lutz aiming to bring the brand closer to its European cousin, Opel.
Since the 2000s, Saturn has been gradually losing its autonomy, as new models, for example, do not utilize polymer side panels and are derivatives of other GM models. Production has since been moved to other GM plants. Production of Saturn vehicles at the Tennessee facility ceased on March 30, 2007. Initially, the Saturn Corporation was headed by a president who consulted with a Union local counterpart and reported to the GM Board of Directors. As the role of Saturn changed within General Motors, the chief executive role was shifted to be a Vice President of Sales, Service and Marketing. Since 2005, Jill Lajdziak, previously a VP of SSM, has been the General Manager of Saturn, who reports to the Vice President of the GM Small Car Group.
Saturn is known for its company-wide "no-haggle" sales policy. Saturn dealers (called "retailers" by the company) are encouraged to sell vehicles at list price. Customer satisfaction with dealer service is among the highest of any car brand in the U.S. The company also won praise for its environmentally-conscious manufacturing processes and for its innovations such as using flexible plastic side panels on its cars to avoid minor dents. However, in 2005, the Saturn Relay became the first Saturn vehicle without polymer side paneling.
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