REPORT: Pontiac and GMC may get axe... you knew this was coming
When the president tells you to sharpen your pencil and improve your last-ditch survival effort, it's time to grab the big eraser. According to reports, General Motors may ditch its GMC and Pontiac brands to demonstrate just how serious it is. If the auto lines go, GM would be pared back to Chevrolet, Buick and Cadillac, a mere shadow of its former self, but the nameplates might become more clearly defined with the added breathing room. Ford's got its trifecta of Ford, Mercury and Lincoln, so GM would match that setup should it unload Pontiac and GMC in some way, as well as carry through with its ongoing process of shedding Saturn, Saab and Hummer.
While Pontiac actually has some unique offerings, GMC is rumored to stand a better chance of sticking around. It still wouldn't be cheap to do away with the brands. There are dealers who will not go quietly into the night, meaning GM will be looking at the possibility of finding a buyer for yet another piece of its puzzle. Of course, everyone's keeping mum about the possibility of life without Pontiac or GMC.
UPDATE: According to General Motors' sales chief Mark LaNeve, the automaker has no intentions of killing off Pontiac or GMC. LaNeve admits that GM is continuing to tweak its strategy, but reports that "GMC is going away are just unfounded, unsubstantiated and untrue."
[Source: Bloomberg]
Reader Comments (Page 1 of 8)
lim 9:30AM (4/16/2009)
goodbye pontiac; it was good knowing you -- you've outlived your days but I'll be damned in your younger days you sure shined.
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PJ 12:48PM (4/16/2009)
Post-1950s, the GTO and Firebird *were* this brand. Great cars, and I'll miss the Pontiac name for that, but the rest was always filler. And over the years, its product planners' comically self-deluded "excitement" claims for cars like the T1000, Grand Am, G3, etc. have exemplified everything that's wrong with GM and its bureaucrats.
That said, it's heartening to see GM making the tough decisions, even if they had to be pushed.
Tool 12:53PM (4/16/2009)
If GM gets rid of Pontiac and GMC -- which is exactly what it needs to do -- how would it channel Buick?
I think they should go all the way and pare the brands down to Chevy and Cadillac only. I realize that Buick is hot in China, but is a shadow of its former self here in the US (all of its customers are dying off).
Just imagine how potent GM would be with these two very focused brands. Then GM would be a powerhouse, with two strong brands, a cleaned-up balance sheet and some new mojo.
RK 1:24PM (4/16/2009)
... Said lim PJ and Tool driving away in their respective Toyota Camry.
PJ 2:01PM (4/16/2009)
There are more than two types of car enthusiast in the world, RK.
I've owned an Impreza, turbo Volvo wagons, an Eclipse, and two modded Miatas, but never a Toyota (let alone a Camry).
JLevy 3:04PM (4/16/2009)
PJ; you forgot the great lamented late-80's LeMans
Mat 2:28AM (4/21/2009)
So PJ is a ricer, that's sweet.
Avinash machado 9:31AM (4/16/2009)
Than I guess BPG dealers will only have Buick's to sell so perhaps they will be merged with Chevy or Cadillac dealers. Buick's product line is too small to have standalone dealers.
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Freak Mojo 9:32AM (4/16/2009)
Guess I will be the owner of a "classic" Pontiac with my '03 Vibe :P
Too bad too... I was really hoping for a Trans Am revival :(
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kal326 9:34AM (4/16/2009)
Huh, well there goes the few GM vehicles I would have considered buying. The new Vibe looks a lot better than its Toyota doppelganger, plus it has a better warranty. Though I wonder why they are going to do with all those left over G3s?
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The Other Bob 9:35AM (4/16/2009)
"There are dealers who will not go quietly into the night..."
Hense why bankruptcy may be the only option. Federal bankruptcy law trumps state franchise laws.
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Tagg 10:00AM (4/16/2009)
They shouldn't go quietly either. GM has jerked their dealers around for years and lately it's gotten much worse. They often delay payment for warranty work or recall work for months which can be devastating for smaller dealers in this economy. Some dealers have admitted to not making payroll because of that. .
It's been reported that the relationship between GM and it's dealers is amongst the worst in the automotive business.
You're 100% right they will need bankruptcy to get rid of it's dealers because the dealers are itching for a fight. They've been bullied by GM for years and will fight hard for whatever they can get.
Sektor 9:36AM (4/16/2009)
So, is GM becoming Chevrolet-Cadillac Co.?
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hypermiler 10:44AM (4/16/2009)
Chevrolet-Cadillac-Buick-Daewoo to be exact.
John 11:15AM (4/16/2009)
GM = Government Motors
Sektor 11:39AM (4/16/2009)
@IHC:
In the US, Daewoo and Buick have no value.
And I was thinking about the supposedly Japanese or Korean bid on Saturn; and it makes even less sense now. Honda and Toyota wouldn't do it, especially Toyota who already has Scion. Hyundai already has Kia. And second-tier Japanese automakers (such as Mazda or Mitsubishi) are struggling to stay in the US.
Saturn is just going to die.
DKB_SATX 11:42AM (4/16/2009)
Chevrolet, Buick, Cadillac, Opel, Vauxhall, Holden, Daewoo.
Sektor 12:03PM (4/16/2009)
Opel and Vauxhall most likely will be out of the new GM.
hypermiler 12:30PM (4/16/2009)
@ Sektor
> In the US, Daewoo and Buick have no value.
Daewoo builds 22% of GM's global output and provides engineering for GM's A, B, and C segment vehicles. GM cannot do its business in places like China, India, and Latin America without Daewoo.
> Saturn is just going to die.
Black Oak and Saturn dealers would not have made their bid without a concrete partner to provide vehicles starting next-year.
Sektor 2:05PM (4/16/2009)
> Daewoo builds 22% of GM's global output and provides engineering for GM's A, B, and C segment vehicles. GM cannot do its business in places like China, India, and Latin America without Daewoo.
That's something wrong with that estimate, since GM's annual production is close to 10 million and Daewoo's capacity is at about 1 million. And I am talking about Daewoo as a brand. It has no value out of Korea (maybe not even IN Korea).