General Motors May Cut Pontiac and GMC After All
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]
With AutoGuide from its launch, Colum previously acted as Editor-in-Chief of Modified Luxury & Exotics magazine where he became a certifiable car snob driving supercars like the Koenigsegg CCX and racing down the autobahn in anything over 500 hp. He has won numerous automotive journalism awards including the Best Video Journalism Award in 2014 and 2015 from the Automotive Journalists Association of Canada (AJAC). Colum founded Geared Content Studios, VerticalScope's in-house branded content division and works to find ways to integrate brands organically into content.
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Cut Pontiac, and I'm no longer for GM. Thanks for electing a c*mmunist, America!
Obama is now going to destroy my favorite brand of car! I just bought a Solstice GXP and wow! what a awesome car 0-60 in 5.2 sec and 31mpg on the highway. Pontiac is building some of its best cars ever and now their going to scrap it!?! This is a sad day in America when we are going to let a socialist dictator tell us we have to drive a battery powered POS that will only go 55mph or the wheels will fall off! The next "Tea party" is July 4th spread the word and let Obama and congress know how you feel about their policies! -THE CONSERVATIVE RESISTANCE