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General Motors May Cut Pontiac and GMC After All

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General Motors May Cut Pontiac and GMC After All

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When General Motor’s first submitted it’s viability plan to the Obama Administration, Saab, Hummer and Saturn were put on notice, while other brands like Pontiac and GMC (as well as Chevy, Buick and Cadillac) were guaranteed to stay on.

There are no guarantees in an economy like this, however, and so both Pontiac and GMC may be on the chopping block after all – this according to a Bloomberg report that cites unnamed sources involved in GM’s talks with the Obama Administration’s automotive task force.

One source stated that while no decisions are final, if either one of the two are to survive the GMC brand is favored – which is expected as it is GM’s second best-selling brand after Chevrolet.

“We are continuing to assess our global operations, brand portfolio and nameplates, and will take further actions to more aggressively restructure our business,” said GM spokesperson Renee Rashid-Merem. “It’s premature to comment on what those actions could entail.”

The Pontiac brand emerged in in 1926 and posted its best U.S. sales year in 1978 with 896,980 units sold. Last year the brand sold just 267,348 vehicles, a decline of 25 percent over 2007,

GMC’s history dates back to 1902 when brothers Max and Morris Grabowsky sold their first vehicle. What then became the Rapid Motor Vehicle Co. was sold to GM in 1912 and in 1915 GMC produced its first light-duty pickup. GMC’s U.S. sales fell 26 percent last year to 376,996 units.

The Obama administration has given General Motors a June 1st deadline to come up with a viable plan to solve its financial woes or face bankruptcy.

[Source: Bloomberg]