Is Pontiac Excitement Dead?

Word that General Motors is about to announce the complete shut down of the Pontiac brand instead of paring it back is disappointing news to say the least.  Given that GM is in precarious financial shape explains the need for a thorough review of the brand, but a complete closure seems drastic.

For the past two decades, GM has been uniting Buick, Pontiac and GMC dealerships under one roof, with a more than 80% completion rate thus far.  That move has saved the automaker money by driving traffic to dealerships who are able to offer a wider variety of products which helps to boost sales.

GM’s Third Best Selling Brand

Last year, Chevrolet sold 1.8 million passenger vehicles in the US market while Buick, GMC and Pontiac sold a combined 781,000 vehicles.  Both those numbers were down sharply over 2007, but are still quite good.  Pontiac alone sold 267,000 vehicles, the third best selling GM brand in the states.

Pontiac was founded in 1926 by GM to complement its Oakland brand.  At that time, Oakland was slotted just above Chevrolet and below Buick and Oldsmobile.  Customers easily preferred the lighter and cheaper priced Pontiacs resulting in GM shutting down Oakland in 1931.

Living In The Shadow Of Chevrolet

Over the years, the Pontiac brand has seen many changes especially as it operates within the shadow of mighty Chevrolet. However, it was back in the early 1960s when GM began to redefine the brand bringing in more performance and style in the form of the Tempest, LeMans, GTO, Grand Prix and eventually the Firebird.  Later, Pontiac rolled out the two-seater Fiero which with the Firebird maintained Pontiac’s “driving excitement” image even as the rest of the line up switched to front wheel drive.

Today, Pontiac offers mostly badge engineered products sold by other divisions with the exception of the Australian Holden G8 sport sedan. The Fiero was yanked in 1988 and the Firebird in 2002, but the rear wheel drive G8 provides solid evidence that Pontiac performance is alive at least in this one model.

Political Considerations Will Decide Pontiac’s Fate

Pontiac’s pending demise is being fueled by the Obama administration which is insisting that GM restructure the company in advance of receiving additional federal funds. GM has until June 1st to demonstrate what the company will look like going forward which includes dumping or selling off certain brands (e.g. Saab, Saturn and Hummer) while closing down plants to realign capacity with demand.

Initially, GM said that Pontiac would continue as a niche brand, selling perhaps one or two products alongside Buick and GMC. Now, GM appears interested in going forward with just four brands: Cadillac, Buick, GMC and Chevrolet while closing down or selling off everything else.

Pontiac’s fate is probably already sealed though the announcement of its pending shut down may still be days away. Regardless, Pontiac will join Oldsmobile as two of GM’s most recent brands shuttered, ending yet another chapter in the historic, if not stormy story of General Motors.

Related Reading — Pontiac G8 Lifespan Likely Cut Short

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