According to a news release, the proposed transaction is part of GM's rebuilding efforts outlined in the viability plan that was submitted to the United States government earlier this year. Under the terms in the memorandum of understanding, Penske would obtain the rights to the brand and certain other Saturn assets, while GM would continue production, on a contract basis, of the Saturn Aura, Vue and Outlook.

"This is the combination of two iconic teams: Saturn and Penske," Saturn general manager Jill Lajdziak said. "GM had the vision to create Saturn and has the desire to see it succeed in the future."

The deal is expected to save more than 350 dealerships and 13,000 jobs at Saturn and its retailers in the U.S.

Roger Penske, chairman of Penske Automotive Group, owns teams in both NASCAR and the IndyCar Series.

"Saturn has a passionate customer base and outstanding dealer network," Penske said. "For nearly 20 years, Saturn has focused on treating the customer right. We share that philosophy, and we want to build on those strengths."

The transaction is expected to close in the third quarter of this year and is subject to customary closing conditions and regulatory approvals.

Financial terms of the agreement were not disclosed.