Another car dealership feels the pinch.

The Penske Automotive Group were expected to purchase the Saturn dealership last week but discussions fell through and the Saturn dealership is due to cease car sales by 2010.

Saturn, owned by General Motors, was to be sold to the Penske Automotive Group and the deal could have been finalised by the end of the week. But problems arose when, although a manufacturer could be found, the board of directors shot the deal down.

This year Saturn, established in 1985, was down by 60% in sales from their previous year alone. While a few brands, such as the smart car, have enjoyed growing sales, the majority of the automotive market has fallen.

The news will come as a blow to the 13,000 Saturn staff who worked hard trying to preserve the company (and their jobs). The Penske group had previously planned to retain them before the deal failed.

Saturn had a different view on car dealerships. It held a ‘no haggle’ view on its prices and was incredibly successful from the 1990s until the year 2000. They won many awards during this period and several afterwards.

It’s a sad thing to see any company fold, especially when there is a high level of redundancy in its wake.

The one advantage to all of this? If you’re looking for a good deal on a car the coming months might be a good time to buy yourself a Saturn.