Washington  - Newly reorganized General Motors Co announced late Wednesday that it would shut down its Saturn division when a buyer for the brand pulled out of a potential deal.

Car retailer Penske Automotive Group Inc said Wednesday that it would not go through with the purchase from GM after an unnamed manufacturer cancelled plans to build cars for the Saturn brand on Penske's behalf.

Penske said it "has determined that the risks and uncertainties related to the availability of future products prohibit the company from moving forward with this transaction." The company would have needed an outside manufacturer after GM halts Saturn production in
2011.

The chief executive of GM, Fritz Henderson, called it "disappointing news." GM employees and Saturn retailers had "worked so hard to try to make this new beginning happen for Saturn," he said.

GM, which underwent a rapid bankruptcy reorganization this summer with the help of a US government bailout, is already scuttling its venerable Pontiac brand by the end of the year, has sold off Swedish-based Saab and plans to sell sport-utility brand Hummer to a Chinese firm. (dpa)