Saturn Adding Products

Saturn Corp. plans to expand its lineup during the next few years, and the additions are sorely needed considering the auto maker's attempt to stop losing money is currently heading in the wrong direction.

Saturn expects sales to decline in 2004 vs. 2003 when the General Motors Corp. subsidiary sold 271,157 vehicles, says Jill Lajdziak, Saturn vice president-sales, service and marketing.

Lajdziak forecasts increases posted by the Vue cross/utility vehicle, Ion small car and the addition of the Vue Red Line and Ion Red Line performance versions will be overwhelmed by the discontinuation of the L-Series midsize car in June.

Saturn sales year-to-date are running 22.9% behind like-2003.

“The reality is with the volume of L-Series coming down it's going to be difficult. We're going to be down,” Lajdziak says, adding fleet sales are being reduced for a better balanced portfolio.

After years of declining sales, Saturn seemed to turn the corner in 2002. While unprofitable, it benefited from its first full year of Vue availability and total deliveries hit 280,248 — up 7.5% from 2001.

Saturn had set an annual sales goal of 500,000 units by 2005.

But sales declined 3.2% to 271,157 units in 2003 as the Ion failed to meet expectations. It continues to struggle and GM is pulling the plug on the L-Series earlier than expected to prep its Wilmington, DE, plant for the Pontiac Solstice sports car in 2005.

Saturn adds the Relay minivan this year, but sales won't begin until the fourth quarter.

With another decline expected in 2004 — Lajdziak refuses to forecast a total — it is highly likely Saturn sales will fall far short of 500,000 units in 2005.

But help is on the way. Saturn will add three new vehicles over the next three years. A sports car (codename GMX023) inspired by the Curve concept will join the Solstice at Wilmington; a CUV (codename GMX966), bigger than the Vue and based on GM's forthcoming Lambda platform, likely will be built at the plant under construction in Delta Township, MI. A midsize car (codename GMX384), based on GM's Epsilon platform, is in the cards. It probably will be built at GM's Orion, MI, plant.