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  • Disruptive Business Model: Penske Plans for Saturn

    Posted on June 6th, 2009 admin 10 comments

    The press was buzzing yesterday when news broke that Roger Penske, a former racer himself, currently hands on in NASCAR, IndyCars, and the Rolex Series, owner of one of the largest the country’s largest auto dealerships in Bloomfield Hills, MI plus a a distributor of Daimler’s line of Smart cars in the US, is buying Saturn for chump-change of $100-$200 million. What’s really interesting, is the radically different business model Penske intents on putting in place. His Saturn company will not build cars, instead outsourcing the actual manufacturing function. Following the Apple model where nothing is made by Apple itself, Penske will concentrate on design and marketing functions. Interesting approach. Hank

     

    10 responses to “Disruptive Business Model: Penske Plans for Saturn”

    1. A very differnt approach for an automaker. Integrating a buisness model from Apple to build cars is going to be a big undertaking. In theory the cost should be reduced greatly cordination it is another thing…

    2. Very interesting idea. Following Appels business plan might prove to be really successful. Now they can focus more on the design and the marketing which they have to do. This just means more hard work in those areas.

    3. The outsourcing deal really isn’t a surprise because there are many companies that have outsourced their manufacturing to other countries. That and since he doesn’t really have a manufacturing plant he has the option to take it to a cheaper location. It’s pretty crazy that he’s buying it for 100-200 million though. Granted this estimation wasn’t given by GM or Penske so of course it’s not official.

    4. Apple is obviously an extremely successful company, but I’m not sure if you can use the same business tactics for cars as you can for computers. It’s a very interesting tactic and it’ll be interesting on how it will all pan out.

    5. Stephen Parkhill

      All I can say is good luck [sarcastic tone]. I’ve worked for Bosch, which is the largest privately owned automotive part supplier in the world and I know first hand how difficult outsourcing can be. Over the past few years at Bosch there’s been a huge push to make more components in house because outsourcing is expensive. Not only that, it is incredibly challenging to deal with manufactures in other countries that don’t speak English as their native language. Coordinating the huge number of manufacturers required to produce an entire vehicle is going to be next to impossible. My guess is it’ll never work…

    6. I think that the U.S automakers have learned about the importance of the quality of their cars the hard way, and now especially in this economy is not the time on gambling that someone else would build your cars and still maintain the quality you want. I think that Saturn’s new owner should consider doing the opposite, as in he should design and manufacture the cars and outsource the marketing.

    7. what the heck is wrong with the front page?

    8. John Jacob Jingle-Heimmer Schmidt

      hacked.

    9. Kristin Crowson

      Perhaps they will do well with the marketing. However, jobs that could have gone towards the manufacturing of the cars will be lost due to the outsourcing. It may be a good move for the company in general due to it being cheaper (maybe) but those who were working in the factories for manufacturing will not be too happy.

    10. Well to me its not surprising that they would outsource their manufacturing. It’s probably way cheaper to have someone else worry about making the product and just focus on other aspects like marketing. Maybe focusing on just the marketing and design will allow the company to be able to make a product that people enjoy more and be able to improve their sells as well. But in the end there is always that issue with how well the outsourced company is at making the product. They could have an awesome marketing plan, but have a shit product which will fail miserably. I personally don’t like anything that is made by Apple, from their IPods too their computers, but it has nothing to do with the quality of the manufacturing, so maybe this plan will work.

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