Monday, Dec. 17, 1990

Business Notes AUTOMOBILES

Where's Saturn? Frustrated dealers and prospective car buyers have been asking that question since General Motors rolled out its much touted new auto in October. Last week GM's Saturn division said that trouble in fitting the car's doors and other exterior components, and in obtaining parts that meet strict quality standards, had limited production through Nov. 30 to 2,162 autos, one- third of the planned output. Saturn said it was correcting the problems, and expects to build 3,000 cars in December, still less than half the projected production rate.

The snags have forced Saturn to postpone the opening of its first dealerships in the Northeast until spring, and confounded owners of the 52 existing dealerships, each of whom has spent about $2 million in start-up costs. "I've got 45 deposits from customers for new cars, but I've received only six cars," laments Karen Tibus, president of a Plymouth, Mich., franchise. A dealer in Cleveland says he's lost 20 sales because of the delays. Saturn officials are reportedly considering ways to compensate dealers for the business they have lost.