R.I.P. Pontiac: General Motors Kills Iconic Brand

3
R.I.P. Pontiac: General Motors Kills Iconic Brand

As we reported last week, General Motors has indeed made the decision to kill the Pontiac brand. The news comes as a part of a new viability plan (yes… another one) submitted to the federal government today.

The new plan will see Pontiac eliminated by the end of 2010, but that’s not all… not by a long shot. Also included in the new proposal is a long list of drastic and sweeping changes that General Motors says are much needed in order to stay in business. Among the list of big changes is the fast-track dissolution of Saturn. Originally scheduled to be dismantled by the end of 2010, the plan now states that the niche brand will be eliminated by the end of this year.

Also on the chopping block are half of all current U.S. General Motors dealerships. Not surprisingly, GM’s previous viability plan wasn’t pessimistic enough, calling for 34 percent of the current 6,246 dealerships to close. That number is now a solid 50 percent.

Other major cuts include the closing of three plants and the loss of 7,000 more hourly workers. This would put the number of hourly workers at 40,000 – 7,000 less than the last viability plan said there would be and 21,000 less than there were in 2008.

In total GM will cut 14 models from its lineup, with just 34 different vehicles being offered in 2010.

Most importantly, however, is that General Motors will offer current debt holders stock in order to reduce the company’s debt. But if too few debt holders cash in, then GM will go bankrupt. And that is looking quite likely as GM says it needs approximately 90 percent of its unsecured debt covered or else it believe the U.S. Treasury will not see the company as viable.

General Motors still faces the likelihood of filing for Chapter 11 but in the mean time it will run with its new viability plan and concentrate on its core brands: Chevy, Buick, Cadillac and GMC. With just over a month to go before the Obama Administration’s June 1st deadline, however, nothing is really certain. Maybe there will be another viability plan? Maybe more will be cut…

[Source: Automotive News]

  • miguel

    Just another little bit of America that’ll be gone under the hand of Obama. He really didn’t grow up in American in the ’60s, so he has no real idea of the place in our culture held dear by Muscle Cars or any other cars for that matter. Obama probably never drove a care until his mid-late 20’s, if at all, and you can be sure he’s had very little experience in a V8 car. Elect a poor man, get a poor man’s car…and the real tragedy is that Pontiac was the best performance value in all the automotive world. I know..I drive a GTO.

  • Joe

    As much as I do not agree with the Obama auto policies it`s GM`s own fault that are sliding down hill fast!First they destroyed Olds,now Pontiac and I`m sure another brand that dates back to the early 1900`s will fall next.The runaway greed at GM has turned the greatest car company in the world into the saddest excuse for a car company in the entire industry!GM`s quality has been on a steady decline since 1972,I`m surprised it has taken this long for them to fall!Maybe they will survive if they finally wake up and realize that they do not have to worry about market share and the bottom line if they worry about turning out quality cars that people want,as they did in there glory days of
    1955-1972!

  • Rick

    GM is a bloated dinosaur and this is recession is the huge kick in the butt / wake up call it needs. Sure, I know GM was in the middle of it’s pseudo-renaissance, but with cars like the Lambda Traverse/Outlook/Acadia/Enclave, Epsilon Malibu/Aura/Lacrosse, and my personal favorite, the GMT360 (takes a deep breath…) Trailblazer/Envoy/Bravada(x)/Rainier/Ascender/9-7x, it was completely asinine to retain so many brands. Chevrolet alone in its heyday had 25% of the market share; today, GM in its entirety doesn’t have it. They need to lean themselves out, make sure they stay on top of R&D so that new generation cars are always in the pipeline as to not get overshadowed by the competition (a la Saturn of the late 90’s early 2000’s), and focus on long-term sustainability rather than next-quarter profits (thank you 90’s SUV-fad). I know GM can’t lean themselves out too much and they need to: 1. Keep costs down and 2. Sell enough units so that the economies-of-scale allow them to be profitable and platform sharing is a good way to get nail both of those so I’m not saying every car needs to be 100% it’s own. Also, “Mr Marchionne, who successfully returned Fiat to profit in 2006 after six years of losses, has long maintained that in the future carmakers will need to sell more than six million vehicles a year to survive.” (BBC) so, again, I’m not saying dump the whole idea of platform sharing. I love my Saturn Sky Redine but if shedding these brands off it what’s going to make GM viable in the future then so be it. Of course, there’s the whole other side of the coin with these greedy, overpaid union workers who are so indoctrinated into this whole UAW worker’s environment they have no clue what it’s like for the rest of America gladly accepting pay cuts and what not to keep their job, but alas, that’s for another post.

« Back
SWEEPSTAKES – OFFICIAL RULES, TERMS AND CONDITIONS

AutoGuide.com’s Monthly Overlay Newsletter Signup – By subscribing to our email newsletter, Entrants are eligible to win one (1) Amazon.com Gift Card (value of $100.00 USD). One (1) winner will be chosen every month at random and contacted by VerticalScope Inc.’s staff. *Amazon.com is not a sponsor of this promotion. Except as required by law, Amazon.com Gift Cards ("GCs") cannot be transferred for value or redeemed for cash. GCs may be used only for purchases of eligible goods at Amazon.com or certain of its affiliated websites. For complete terms and conditions, see www.amazon.com/gc-legal. GCs are issued by ACI Gift Cards, Inc., a Washington corporation. All Amazon ®, ™ & © are IP of Amazon.com, Inc. or its affiliates. No expiration date or service fees.

1. NO PURCHASE OR PAYMENT OF ANY KIND IS NECESSARY TO ENTER OR WIN THIS SWEEPSTAKES. AGE/RESIDENCY RESTRICTIONS, VOID WHERE PROHIBITED.

2. PRIZE: One (1) Winner will be randomly selected every month to each receive: one (1) $100.00 Amazon.com Gift Card (the “Prize Supplier”). Total approximate retail value of all prizes is approximately $100.00 USD. Prizes are not transferable and no cash or prize substitution is allowed. Prize package is awarded "as is" with no warranty or guarantee, either express or implied.

3. ELIGIBILITY: From the time of entry through the final date of prize fulfillment, each contest entrant and selected entrant must be a permanent lawful citizen and resident residing in the 50 United States or the District of Columbia or in Canada, and be twenty one (21) years of age or older. VOID IN PUERTO RICO, THE U.S. VIRGIN ISLANDS, IN ALL FOREIGN COUNTRIES OUTSIDE OF THE UNITED STATES, AND ALL OTHER U.S. TERRITORIES OR CANADA AND POSSESSIONS AND WHERE PROHIBITED OR RESTRICTED BY LAW. Employees, officers, directors, agents and representatives, of the Sponsor and the Prize Supplier and each of their respective parent companies, affiliates, subsidiaries, advertising and promotion agencies, promotion partners and any entity involved in the development, production, implementation, administration or fulfillment of this Sweepstakes, and the immediate family members (e.g., spouse, mother, father, sister, brother, uncle, aunt, nephew, niece, grandparent, in-law, daughter and son, regardless of where they live) and persons living in the same household (whether or not related) of such individuals are not eligible to participate or win. Only one selected entrant per household. All decisions of the Sponsor with respect to this sweepstakes are final. The Sponsor shall have the right at any time to require proof of identity and failure to provide such proof may result in disqualification from the Sweepstakes.

4. ENTER BY INTERNET: You may enter this sweepstakes via the Internet by logging onto AutoGuide.com and subscribing to our email newsletter via the pop-up overlay.

5. SELECTION OF WINNER: One (1) Entrant will be selected by random selection who have subscribed to our email newsletter. The winner may be announced publicly on AutoGuide.com and will be contacted by VerticalScope Inc.’s staff. The winner will be required to provide a mailing address (that is not a P.O. box) to receive the prize which will be shipped free of charge.

6. ODDS OF WINNING: Odds of winning a prize are determined by the total number of eligible entries received.

7. RESTRICTIONS: The prize package consists of one (1) Amazon.com Gift Card with an approximate value of $100.00 USD. If prize cannot be awarded due to circumstances beyond the control of the Sponsor or Prize Supplier, no substitute prize will be awarded due to the unique nature of the prize. Sponsor and Prize Supplier shall not be liable to the winner or any person claiming through winner for failure to supply the prize or any part thereof, by reason of any acts of God, any action(s), regulation(s), order(s) or request(s) by any governmental or quasi-governmental entity (whether or not the action(s), regulations(s), order(s) or request(s) prove(s) to be invalid), equipment failure, utility failure, internet failure, terrorist acts, threatened terrorist acts, air raid, blackout, act of public enemy, earthquake, war (declared or undeclared), fire, flood, epidemic, explosion, unusually severe weather, hurricane, embargo, labor dispute or strike (whether legal or illegal) labor or material shortage, transportation interruption of any kind, work slow-down, civil disturbance, insurrection, riot, or any other cause beyond Sponsor's or Prize Supplier's control (collectively, "Force Majeure Event"). Sponsor shall not be responsible for any cancellations, delays, diversions or substitutions or any act or omissions whatsoever by the performers/events, other transportation companies or any other persons providing any of these services and accommodations to passengers including any results thereof such as changes in services or accommodations necessitated by same.

8. CONDITIONS: By entering the Sweepstakes, entrants agree to be bound by the Official Rules, Terms and Conditions and that Sponsor has the irrevocable right to use in perpetuity entrants' names, user names, likenesses, photographs, voices, home mailing address, biographical and prize information, and entry materials, without notice to entrants and without compensation or obligation, in any and all media now or hereafter known throughout the world, in any manner whatsoever, to advertise and promote Sponsor, its products and services, the Sweepstakes, and for any other purpose except where prohibited by law. Entrant waives the right to assert as a cost of winning a prize any and all costs of verification and redemption or travel to redeem said prize and any liability which might arise from redeeming or seeking to redeem said prize. Sponsor is not responsible for fraudulent calls or emails made to entrants not by the Sponsor. If the Sweepstakes is not capable of running as planned by reason of damage by computer viruses, worms or bugs, tampering, unauthorized intervention, fraud, technical limitations or failures, any Force Majeure Event or any other cause which, in the sole opinion of Sponsor, could corrupt, compromise, undermine or otherwise affect the administration, security, fairness, integrity, viability or proper conduct of the Sweepstakes, Sponsor reserves the right, in its sole and absolute discretion, to cancel, terminate, modify or suspend all or any part of the Sweepstakes, and to select a winner from among all eligible entries received by Sponsor up until the time of such cancellation, termination, modification or suspension, as applicable. Sponsor reserves the right in its sole discretion to disqualify any individual that (i) tampers or attempts to tamper with the entry process or the operations of this Sweepstakes in any manner, (ii) violates the Official Rules, Terms and Conditions or (iii) acts in an unsportsmanlike or disruptive manner, or with intent to annoy, abuse, threaten or harass any other person. CAUTION: ANY ATTEMPT BY AN ENTRANT OR ANY OTHER INDIVIDUAL TO DELIBERATELY DAMAGE OR UNDERMINE THE LEGITIMATE OPERATION OF THIS SWEEPSTAKES IS A VIOLATION OF CRIMINAL AND CIVIL LAWS. SHOULD SUCH AN ATTEMPT BE MADE, SPONSOR RESERVES THE RIGHT TO SEEK CIVIL AND/OR CRIMINAL PROSECUTION AND/OR DAMAGES FROM ANY SUCH PERSON TO THE FULLEST EXTENT PERMITTED BY LAW. Any expenses and receipt and use of the prize and federal, state and local taxes and fees applicable in connection with the prize awarded are the sole responsibility of the winner. An IRS Form 1099 will be issued in the name of the winner for the actual value of the prize received. This Sweepstakes is subject to all federal, state and local laws of the United States. VOID WHERE PROHIBITED. Sponsor, Prize Supplier, and their respective officers, directors, parent companies, affiliates, subsidiaries and advertising and promotion agencies, employees, representatives and agents are not responsible for and shall not be liable for (i) any injuries, losses or damages of any kind caused by a prize resulting from acceptance, possession or usage of the prize, or (ii) printing, distribution or production errors. Sponsor or its affiliates may rescind any promotion found to contain such errors without liability at its or their sole discretion.

9. SPONSOR: The Sponsor of this contest is VerticalScope Inc. (the owner and operator of AutoGuide.com), 111 Peter Street, Suite 700, Toronto, Ontario, M5V 2H1.

Subscribe to our email newsletter and automatically be entered to win.
*Restrictions apply. See offer for details

Get Breaking Automotive News, Reviews and Video in your Facebook Feed!

Already Liked