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GM May Kill Pontiac and GMC in an Effort to Cut Costs

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GM may be close to a June 1st bankruptcy filing if the automaker can't restructure. In an effort to show that the automaker is serious GM may kill Pontiac and GMC in an effort to further cut costs.

Killing Pontiac and GMC would eventually mean that GM would only have three brands: Chevrolet, Buick and Cadillac. The Saturn, Saab and HUMMER brands are either going to be sold off or closed.

According to some sources GMC has a better chance of surviving than Pontiac.

Currently the two brands are being studied as GM tries to find a way to avoid bankruptcy.

Full Story: Bloomberg

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Comments (30)

blubbabutt:

that would suck

i happen to think the G8 is a great performer...
gmc would probably survive if they gave it a chance.

i see way more yukons than tahoes
acadias than whatever the chevy variant is.

if they were smart they would cut out all the duplicate models for the time being

no sense in having 4 of the same car floating around.

of course then again this is the same company who wants to invest into the segway

Totenglocke:

If they kill off Pontiac, then they need to just take the Pontiac badges off the G8 and slap Chevy badges on it.

Auto:

As I have said in a different thread, Pontiac should have only the most performance oriented vehicles in their line-up: The G8 and Solstice. Make Pontiac a niche brand for only serious performance cars (note the word "cars"). Make it the BMW of the GM line up (performance-wise, not luxury-wise, leave that to Cadillac).

As far as GMC is concerned; I've always felt they were redundant. What they have, Chevy has too. The only thing different was the trim. I'd say if they are determined to keep GMC, make them "the" truck division and take the trucks out of Chevy's line-up.

Of course the Chevy truck loyalists will whine, but it's a case of one or the other, you can't have both GMC and Chevy with the same line-up.

DuDe:

I could never understand why GM had so many similarly looking cars that where just named differently. It is clear they to get rid of some, as the matter of fact GM should have done this long time ago!

D!:

GM should have killed Pontiac a long time ago. I haven't seen anything I liked except for the Grand Prix. Yes, I know, there's the GTO and the G8 but both of those cars are just rebadged Holdens. Besides how can I trust an automaker that made the Aztec?

For the most part, there entire lineup has variants in either Chevy or Saturn. They're also supposed to be the performance division but most of their car's aren't performance oriented, they just have a performance trim level. Chevy already does that with half their lineup (Cobalt SS, Impala SS, Monte Carlo SS, HHR SS, Silverado SS, SSR, Camaro SS, etc.) so now what's the point of having Pontiac around.

I say keep GMC an SUV/Truck division, kill off Pontiac, make the Lacrosse a Chevy or entry level Cadillac and kill off Buick and bring the Sky Roadster and Astra HB over and get rid of Saturn and the other GM dealers.

Kempai Tai:

Fine. Kill Pontiac, but keep the G8.. just make it the Chevy G8, or some such.

Killing off the two brands isn't a real issue. All they need to do is move the decent vehicles under the Chevy umbrella. Just don't rename the vehicles and confuse the crap out of everyone (the G8 is now the Chevy Zoom!).

To D!, I wouldn't "get rid of" Saturn. Sell it back to the original people that ran it with profitability (I believe I read somewhere that they are considering buying it back). I remember Saturn being one of the few bright spots in the car industry before GM bought them and turned them into yet another loss-leader.

D!:

I didn't know that Saturn was owned by anyone other than GM. I remember when they first came out though and everyone was like, "wow," no hassle sales, cool-looking (at the time) vehicles, and putting people first. Those were good times.

Mike:

No Firebird? yeah that would suck.

Avatar:

Buick can't survive without Pontiac and GMC, it would kill the sales channel. Likewise, Buick sold a whooping 7,400 cars in March, Pontiac 17,600, and GMC 19,100. Ax two brands producing twice as much as Buick, that makes sense. The only place Buick produces is China. GMC is in more markets then Buick and Pontiac's second best seller, the G8, is sold the world over as a Holden, a Vauxhall, a Chevy, and an Opel. Ironically, Buick's best seller was the Enclave at 3,200 units, but GMC's Arcadia sold 5,000 units, sold nearly 3 times as many Sierras then Buick sold Enclaves, and sold the same number of Yukons. What makes more money, Yukons or Enclaves?

GMC likewise is one of the most profitable brands for GM, even after sales fell off. The are also more profitable then their Chevy counter parts. The greenie movement war on SUVs and trucks is getting out of hand.

Wayne:

I feel we should outlaw groups like Greenpeace, sierra club, and other eco terrorist groups like theirs. I love pontiacs line up with a few exceptions. They shouldn't sell CUV's or boxy little vegamatic magnets. I hope to buy a G8 in 2010, if funding allows. It has the room I need with the horse power I like. The malibu is just to small for a big guy like myself. Cadilacs are to expensive for what they provide. I'd by a Buick, but I want rear wheel drive, and don't want to look like the old folks.

Richard:

Well, yea. How many millions of dollars a year do you need to be paid to figure that one out? All GM needs is Chevrolet and Cadillac.

The rebadged Holdens are the best thing Pontiac had going for it and it does not matter what they are badged...call them Chevys and be done with it.

Was there ever a benefit to having a GMC truck versus having a Chevy truck? Especially one with different mechanical parts doing the same thing? I don't think so. GMC should have gone away a long time ago.


Dan M:

How 'bout GM just makes cars without badges, and then you can call it whatever you want.... Two companies, a car company, and a sign company. Problem solved.

"what would you like on the front of your truck sir, 'Chevy', 'GMC', or 'Get er done' "

Avatar:

GMC makes more per truck sold then Chevy, nothing can change that. GMC also apparently attracts import buyers much more then Chevy. So if GMC was canned and every single person who buys GMCs now goes to Chevy, GM would still be losing money on the deal and the new buyers it is drawing in. And as seen with Oldsmobile, most buyers disappear rather then go to another GM brand.

The government wants viability, then why get rid of GM's most profitable per vehicle sold brand? Oh, that's right, the auto task force is a 20 person committee, 2 of which own American vehicles, and none of which have any experience in the automotive industry. The know what the American public wants less then GM does.

Bradford:

How about replacing the Chevrolet Impala with the Pontiac G8
..... OR .....
How about putting all the Pontiac G8 "goodies" into the Chevrolet

Arnt they both the same size anyway? I mean, why not right?

--------------------------------------------------------------------

Take GMC out of the equation. There is really no point to them anyway and never really was. Their trucks are just rebaged Chevrolet trucks with more cost to to the fact their is like 1 of the GMC counter-part of its equivilent Chevrolet "twin".
[example: 1 Sierra made for every 3 Silverado's made]

Axe Pontiac. Their dying. 2 vehicles are worth a damn [Solstice and G8, but they can be moved to Chevrolet. While GM is at it, they should axe the HHR. Pointless, ugly, cramped little turd.

I've been thinking about something to... just on my mind... should GM axe the HUMMER brand, then bye the JEEP brand?? I mean, their both SUV based off-roading brands, its just JEEP provides a better future then HUMMER. This way GM still has that "off roader" brand still in its lineup. The thought of a Wrangler with the 5.3 V-8 as an option :-) Just a thought....


GM LINEUP:
Chevrolet - main brand
Buick - old people
Cadillac - rich people
Jeep - adventure people. [JUST A THOUGHT!! Don't kill me! LoL]

TSU:

I agree with the other posters here. Just cut GM down to Chevy/Cadillac, and be done with it.

Roll the G8 and the Solstice into the Chevy lineup, they'd fit comfortably in with the Camaro and Covette, since they don't duplicate either one. Buick has no value whatsoever, so it's a mystery why they'd be thinking of axing Pontic and GMC, but keeping Buick. Seriously, does anyone who's not a member of AARP even consider them?

In short, paring it down to a business model similar to the Japanese makes, a la the Honda/Acura, Toyota/Lexus, Nissan/Infiniti model, would most likely be successful.

Matt:

All trucks and SUVs should be produced under GMC. Anything luxury would be Cadillac, everything else is Chevrolet. Pontiac should be kept as a performance name for GM, like Nismo is for Nissan.

Avatar:

"GM to keep GMC, Pontiac; no plans to quicken dealer consolidation

Jamie LaReau

Thursday, April 16, 2009 3:32 PM

GM's Mark LaNeve: GMC reports are "unfounded, unsubstantiated and untrue.”

DETROIT -- A senior General Motors executive today denied reports that President Barack Obama's automotive task force has pressured the automaker to dump GMC and Pontiac.

Company sales chief Mark LaNeve also denied rumors that GM plans to terminate the franchise agreements of poorly performing dealers before June 1to accelerate its dealership consolidation campaign.

"The strategy we laid out for you [in February] is still the strategy," LaNeve, GM's vice president of vehicle sales, service and marketing, said today in an interview with Automotive News.

"Are we working it, tweaking it, examining every aspect of it? Yes, but nothing has changed with our strategy," he said. Reports that "GMC is going away are just unfounded, unsubstantiated and untrue," LaNeve said.

In a Feb. 17 report to the U.S. Treasury Department, GM said it planned to go to market with four core brands: Chevrolet, Cadillac, Buick and GMC. Pontiac would remain as a much smaller brand. GM is trying to sell Hummer, Saab and Saturn.

And that is still the plan, LaNeve said. "They're not pressuring us to give up on anything," he said. "Buick and GMC are very profitable brands, and we have plans to make them even more profitable." "

So much for that news scoop.

SteelCity1981:

Well this is a no brainer. They should have done this 5 years ago. No reason for GMC anymore. Nor is there no reason for Pontiac anymore either. GMC and Pontiac can all fall under the Chevy division from now on just like how Ford puts all of it's heavy duty trucks and sports cars under one division. All GM realyl needs is Chevy, Buick and Caddy that's it.

sm0ke:

good they need to kill everything off except chevy, cadiallac, GMC. yes that means buick to. i know that buicks do quite well in china, but seriously they are old ppl cars. divert there efforts into chevy,cadillac, gmc(hummer) i would actually prefer if they kept hummer over gmc. hummer looks more ruged and they run off the same platforms. they also need to establish these brands globally everyone has heard of them so why not make them available. and they should keep the performace oriented badges: (SS.,V series), and they should be limited production. but sadly i think GM's management is retarded like that new segway thing, then killing off cadiallac in europe?!?! they always say they are better than the german cars and more affordable well they just closed that market for them selves.

WTF:

GM needs to axe the UAW and quickly. I will never buy a UAW built car regardless of brand or model.

mel:

Most GMC dealers are also Pontiac dealers - if you kill Pontiac, you might as well kill GMC. You will lose a little in sales by killing GMC, but you would save more than you lose.

Kempai Tai:

Apologies, D!. I misspoke about Saturn. Saturn has always been under GM. However, they acted as an independent arm of GM - with their own dealership channels and body designs. So, you are correct in your belief they were always under GM.

I guess it was when the high muckety-mucks in GM thought they could run Saturn better than the independent management that things went to hell for Saturn. I also remember how Saturn was pointed to as an example of a car company doing something right for a change. My how times change.

Apparently, a private equity group is interested in buying Saturn from GM. Hopefully, they'll return Saturn to the days of being a profitable leader. They were never "awesome" cars, per se. But, they were doing something right.

SteelCity1981:

If any division of GM will be the first to get axed it's Saturn, unless someone one wants to buy this division off of GM. I don't think even if GM found a buyer that they would sell GMC or Pontiac because they would be too prideful to give these divisions up, in which i can understand considering the long history GM has had with those divisions. At least if they axed both of them now they could always bring them back at some point in the future when this company becomes profitable again.

Miki:

Kill GM in general..they make crap anyway.

longdxcommuter:

Pontiac should be an in-house tuner division sold at Chevy dealers

GMC should focus on commercial vehicles

JoeW:

Axing Pontiac and GMC makes sense. These two are just copy machines...at least Buick has something belongs to this brand (ok, let's say the AARP spirit :) Buick also does very well at China though many Buick there are actually rebranded Opel, Holden, Suzuki and even Daewoo

But first of first, ax UAW, or Big three (tomorrow's small and shaky three) will have no hope.

John C:

GM should consolidate the brands. It isn't like Buick, Chevy and Pontiac are independent brands. They all sell re-badged products that share so many components it's crazy to have so many duplicate brands. The dealer network and too many brands costs GM over head and costs they can't afford. Time to cut costs and rein in the expenses.

Dwayne F:

I think the big thing GMC has going for it is the Denali brand. I remember hearing once that 1 in 3 Yukons sold is a Yukon Denali. There is significant brand equity in that name plate. I'd recommend GMC become an SUV/crossover brand. I can understand eliminating the duplicity of Silverado/Sierra. If the Denali name plate is eliminated, I don't think those buyers will upshift to Cadillac or downshift to Chevy. They'll probably leave.

Trooper Bri:

The Yukon/Suburban/Tahoe/Escalade (and the extended versions of them) is all the same base vehicle. The Denali is simply a trim package, not a brand. You can easily kill GMC and the Suburban or Tahoe without losing the customer base, and still slap a Denali package on the surviving Chevy version.

I still see the higher percentage of who buys these trucks new. Upper-middle and high income individuals and families who can actually fill a truck this big. There is no other real option besides the Ford/Lincoln Expedition and Navigator for them to consider unless GM folds.

The clock is ticking for GM in a big way. In the middle of all this mess, they have the unique opportunity to pick and choose to consolidate all their better selling vehicle platforms to a Chevy or Cadillac line, and dump everything else. I suppose the GMC brand could still stick around only for the medium and heavy trucks and cab/chassis line.

Even if GM converted all their better selling vehicles (or spectrum) to the Chevy badge, they still wouldn't equal the sheer number of vehicles that Toyota offers currently.

rob:

I think that GM should discontinue buick in the united states, but keep selling them in china because that is actually working for them. With all of the new drivers going to buy new cars now. I would think most 20 year olds would buy a pontiac rather than an old man's buick.

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