REPORT: Holden to lose $1 billion annually if GM shutters Pontiac
2009 Pontiac G8 GXP: Click above to view the gallery
The G8 may be the best Pontiac in decades, but the stellar RWD sedan doesn't stand a chance if the arrow head is forever retired. The loss of the G8 is difficult for enthusiasts, but it'll be even tougher for Holden. GM's Australian arm will lose $1 billion ($716 million US) in revenue every year with the loss of the Commodore clone. Holden has been counting on 30,000 annual exports to the US and 70,000 worldwide exports. GM spent $77 million to upgrade the Port Elizabeth plant to build left-hand drive vehicles, and the plant received $6.9 million in loans from the Australian government to make the project happen
Even though the G8 has generally been considered an excellent vehicle by the press and enthusiasts alike, it hasn't sold well in the US. About half of the 25,000 G8s shipped Stateside have yet to leave the dealer lot. The collapse of auto sales in the US have a lot to do with that, but we'd add that marketing efforts of the G8 have been less than stellar as well. It's hard to buy a G8 when you don't know it exists. March was a bright spot for the G8, though, as nearly 3,000 models were sold; the vehicle's best month ever.
One possibility for the G8 that could save Holden a lot of money while saving an excellent RWD sedan from extinction would be to convert it into a Chevy. The Commodore already dons the Chevy bow-tie in some markets, and we're sure US dealers would welcome a RWD sedan into its showrooms.
[Source: News AU]
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Reader Comments (Page 1 of 4)
Jacob 8:06AM (4/27/2009)
Slap an Impala badge on the G8 and call it a day. 2 birds, one stone.
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Chris 8:11AM (4/27/2009)
Ditto...
Yikes 8:15AM (4/27/2009)
Or Caprice. Revive Chevelle.
Craig 8:22AM (4/27/2009)
I was just coming here to type that it would make an excellent Chevelle. I mean, the Charger is a 4-door now too.
And for some reason it just feels like a Chevelle to me. And it's mid-size.
Sea Urchin 8:26AM (4/27/2009)
"The loss of the G8 is difficult for enthusiasts,"----Is that why they lined up to buy the car?
But obviously this car would sell in much bigger numbers if marketed as a Chevy, but doing so would leave Pontiac largly irelevant. Now that we know that Pontiac will be killed it does make sence to sell this great car as a Chevy.
Ed 8:34AM (4/27/2009)
There had been some some talk/rumors that Chevrolet may get a Holden based rwd Impala, to offset the cost of the planned rwd Buick based on the Zeta platform.
Though this is truly a sad day.
Judy Zik 8:49AM (4/27/2009)
Unfortunately for Holden this isn't a long term arrangement. Any mass market Chevy version will be built in Oshawa alongside the Camaro and the Buick Regal. The G8 was a stopgap measure that hasn't sold very well. That and GM's financial difficulties has likely put the future of these models in doubt. There is certainly little chance they will want to keep importing them from the Aussies in the years to come. There is also some question as to whether or not Opel and Holden will even remain with GM since they are assets that GM's creditors may force them to either sell or spin off in early June when they file for bankruptcy.
Dave 9:52AM (4/27/2009)
It would make a fine Buick Grand National
iamhoff 1:10PM (4/27/2009)
And the best part of that strategy...the G8 ST becomes a ready-made El Camino!
HJC 2 8:15AM (4/27/2009)
Doesn't matter............. Obumer killed the G8 with the new upcoming save the world gas mileage requirements Thank god for our leader ???
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tanjim 8:25AM (4/27/2009)
we needed the standards, europe and japan have plenty of performance with their higher standards, why not us? we're smarter after all :)
Mr.Oak 8:43AM (4/27/2009)
HJC2: You had to know that I was going to call you on this. Exactly what is your cabinet post in the "Blame Obama" movement?
The reason the G8 is not selling, if for exactly the same reason the entire industry saw a 30+% drop in sales across the board.
Get over it, the election is over you lost. The truth is, CAPITALISTS thieves and GOP ideological zealots are what killed the G8. They stole America's wealth, while GWB and his gang of thugs stood lookout and drove the get away car (probably a G8).
Ben 8:54AM (4/27/2009)
1) Obama's final mpg requirements were lower than those proposed by Bush
2) They're still pretty low standards. It shouldn't be difficult for any automaker to meet them
Frank 9:23AM (4/27/2009)
@Mr. Oak
Apparently his cabinet post, jusdging from your reply, is the same one you held during the Bush administration. Pot meet Kettle.
HJC 2 11:16AM (4/27/2009)
Dear Comrade Oaks
I made the biggest mistake because I voted for Mr Obama
Who do you think made the USA as great as it is ?????????????
I think we did very well for the last 200+yrs with the system we have
Now is not the time to DUMB down this country which is well on it's way of going.
GWB didn't cause these problems.... people like you caused most of the problems with liberal, socialistic, weak ideas
oxfdblue 5:00PM (4/27/2009)
"GWB didn't cause these problems.... people like you caused most of the problems with liberal, socialistic, weak ideas"
Nah, the Bush admin had nothing to do with easy lending, turning a totally blind eye to anything going on in the financial industry that helped cause the financial mess we're in. The GOP had nothing to do with the doubling of the national debt or giving the lion's share of a $4.5 trillion tax cut to the wealthiest 5% of the nation. They had nothing to do with spending $600 billion and counting on a needless war in Iraq.
And those horrible liberals- they brought us all those miserable socialist programs like Medicare, Social Security, Student Loans and Grant programs.
Bill Maher said it best last Friday night,
Look, I get it, "real America." After an eight-year run of controlling the White House, Congress and the Supreme Court, this latest election has you feeling like a rejected husband. You've come home to find your things out on the front lawn -- or at least more things than you usually keep out on the front lawn. You're not ready to let go, but the country you love is moving on. And now you want to call it a whore and key its car.
That's what you are, the bitter divorced guy whose country has left him -- obsessing over it, haranguing it, blubbering one minute about how much you love it and vowing the next that if you cannot have it, nobody will.
But it's been almost 100 days, and your country is not coming back to you. She's found somebody new. And it's a black guy.
Avinash machado 8:15AM (4/27/2009)
Or they might as well retain Pontiac as a niche brand selling just the G8 and Solstice.
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Jei 10:11AM (4/27/2009)
I tend to agree with you in the short term. GM should continue to develop the G8 & Solstice....in a year or so, more people will be more familiar with both vehicles and may want to purchase the Pontiac versions.
In the long term, the G8 should be transitioned to be the new Impala. Hell, they can get rid of the current Impala next month and replace it with the G8....Chevy would have an instant hit! We've been begging for a new RWD Impala since they dropped the Caprice-based Impala in the 90's. This would be a good way to separate the models into separate vehicle lines, making the Impala a sporty full-size, family car option with some real meat.
viper GTS-R 8:18AM (4/27/2009)
Ahhh big deal, instead of bringing another sedan over they should have brought that El Camino looking thing. There were alot of people waiting at GM's doorstep for that thing to come and they all got a big fat NO, that car had HUGEEEE popularity. Don't get me wrong, we all know the G8's a great buy for the performance but painting it orange and throwing it into a pile of other Pontiac's with no souls doesn't help. To bad they couldn't save the GTO long enough and put the sucker on the same line as the Camaro. When Chrysler dropped Plymouth I think it was a ok move at the time, the Prowler moved over and I don't think anyone in this day and age would be upset if there was a Chrysler Cuda.
Nonetheless, I hope their kicking themselves in Detroit. Anyway 40 minutes till we find out the true fate of Pontiac. It's just sad more jobs are expected to be lost and a bigger hole is being dug. After this, the next bit of business is if Fiat will help Chrysler to stay in the game.
--RS
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Adam Carolla 8:29AM (4/27/2009)
You are the thankfully the last person that GM et al will take advice from. Especially advice that would destroy them. Ten of your buddies wanting the G8 pickup does not equate to HUUGGGGEEE popularity. None of them would buy it either.