Saturn Corp.'s Module II Decision

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In the Spring of 1994, Saturn Corp. was setting sales records by attracting more than 25,000 buyers per month. Saturn officials believed there was a long-term opportunity to sell 400,000 to 500,000 cars per year in the United States and selected international markets. Saturn managers had been reviewing options for a second assembly plant (known as "Module II") with General Motors (GM) since the beginning of the year. One possibility was to expand capacity at Saturn's existing production facility in Spring Hill, Tennessee. A second set of options involved refitting one of several plants that had been mothballed or was scheduled to close shortly.
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