Topic: End of the line for Pontiac? Ominous news on Solstice, courtesy Mark LeNeve...

[GXPinKC]

 Bloomberg is reporting, based on discussion with Mark LeNeve, GM North American Sales Chief, that Pontiac would likely be shrunk down to one model, a low volume, high desirable sports model akin to Corvette...and that the model would likely be the G8 sports sedan. (Although which model is speculative).

Bloomberg.com:  Worldwide

Quote: 
GM May Shrink Pontiac to One Model From Six in Bid to Survive
By Greg Bensinger

Dec. 18 (Bloomberg)--General Motors Corp. peddled Pontiacs for years with the slogan "We build Excitement."  To stay afloat, it's producing fewer thrills--and models.

The company may shrink the Pontiac division to a single model from six following a drip in sales every year since 1999.  "It might be just one model," Mark LaNeve, GM's North American sales chief, said in an interview.

GM joins Chrysler LLC and Ford Motor Co. in trimming brands as U.S. sales lag amid the biggest financial crisis since the Great Depression.  GM has said it will run out of cash by the end of the month and is seeking financial aid from the government to avoid a collapse.

While GM told Congress on Dec. 2 that it would shrink the number of models it sells, including at Pontiac, it hasn't said prevously that it might jettison all but one Pontiac brand.

Paring Pontiac to a lone model would deprive GM of its third highest-selling brand after Chevrolet and GMC, and almost 2.2 points of U.S. market share accounted for by Pontiac's sales of 358,022 vehicles in 2007.  GM's market share has dwindled to 22.1 percent from a peak of 51.1 percent in 1962.

Sales of GM vehicles are down 22 percent through November of this year from the year-earlier period, including a 23 percent plunge for Pontiac to 250,902 units.  Only Pontiac's redesigned Vibe small car has increased sales this year.

Gaining by Losing

Jettisoning the Pontiac brands would help GM by cutting jobs and production costs, trimming advertising and eliminating lower-margin vehicles, said Efaim Levy, an
equity analyst at Standard & Poor's in New York.

"GM can get more bang for their buck, said Levy, who rates the Detroit-based automaker as "sell."  GM shares have fallen 82 percent this year.  They rose 12 cents yesterday to $4.37 in New York Stock Exchnge trading.

The company, which scrapped the Oldsmobile line in 2000, said in its request to Congress for help that shrinking brands would result in 20,000 to 30,000 fewer U.S. hourly and salried workers.

GM already plans to eliminate its Pontiac Torrent sport-Utility vehicle, said Debbie Frakes, a spokeswoman.  GM gave no estimate of cost savings or worker reductions at Pontiac. 

The one remaining Pontiac would be a car to be sold alongside Buicks and GMCs, on a scale similar to its Corvette available in Chevrolet showrooms, LaNeve said.  GM sold 33,685 Corvettes last year.

'Lost Its Way'

While LaNeve wouldn't name the remaining Pontiac, he described it as "a very high-appeal, performance-oriented model as opposed to a mainstream high-volume model."  It would be less expensive than the Corvette, which starts at about $50,000, LaVeve said.

That most likely means the Pontiac G8 sedan, introduced this year in the U.S., said John Wolkonowicz, an analyst with IHS Global Insight in Lexington, Massachusetts.  He said Pontiac may drop the G5, G6, Solstice and Vibe cars and the soon-to be released G3 compact. 

The cutbacks would mark the near-demise of a once iconic brand, he said.

"In its heyday, Pontiac was a brand everyone wanted to own and no one would be embarrassed to drive," Wolkonowicz said.  "Pontiac simply lost that excitement: it totally lost its way."

First sold in 1926, Pontiac became known as a higher-Quality alternative to Chevrolet.  The unit developed a reputation for high-performance autos such as the now-defunct Bonneville sedan, eventually rising to third in U.S. sales behind Chevrolet and Ford's namesake brand.

Muscle-Car Era

Pontiac's 1964 GTO sports car ushered an era of so-called muscle cars such as the Dodge Challenger and Chevrolet Camaro.  "Pontiac at that time was the golden boy of the auto industry," Wolkonowicz said.

The division's most popular model was the Grand Prix, with sales of 288,000 in 1977, GM said.  Pontiac sales peaked in the U.S. at 896,980 in 1978, GM's best year, according to trade publication Automotive News.  By last year, they had fallen 60 percent from that record.  Today, GM is trying to incorporate the brand alongside Buick and GMC models in dealer showrooms.

GM also is rethinking the future of its Saturn unit and has put Saab and Hummer on the sales block.  Ford said on Dec. 1 it will sell Volvo, while Chrysler is closing a Newark, Delaware, plant this year where it makes the Dodge Durango and Chrysler Aspen sport-utility vehicles.

GM Vice Charman Bob Lutz, who in 2005 described Pontiac as a "damaged brand," has said the division hit a low point with its Aztec crossover SUV that debuted in 2001.  Time magazine listed the Aztec among the worst 50 cars of all time in 2007, citing a "deformed and scary" appearance. 

Dealers to Too

LaNeve said GM will try to eliminate 1,700 of its 6,400 U.S. dealerships in five years, in part by normal turnover and combining showrooms for Buick, Pontiac, and GMC, know internally as BPG.  GM expects to lose about 400 dealerships after selling the Saab and Hummer franchises, he said.

Reducing dealers helps cut competition, boosting sales at remaing outlets.  The changes may add more desirable customers, said Charles Martin, who owns Classic Buick-Pontiac in Carroliton, Texas. 

"This could be a good thing for the BPG channel, by inviting younger buyers," he said.
[End of Quote].  My thoughts...

Well that story came out today.  Any thoughts? 
GXPinKC

[Sol Asylum]

Just curious how many G8's has Pontiac sold relative to the number of first year Solstice?  The G8 as I understand it is just a new version of the GTO that Pontiac had out when I bought the GXP.  Obviously sales on the GTO must not have been that good or they would have kept the name/car as it was instead of introducing it as something new.  Any idea as to the number of GTO's they sold?

This annalist may have his conclusion wrong.  Didn't Lutz say he wished GM had more lines like the Kappa?

[DeepBlueGXP]

The G8 actually uses the same frame as the G6 and the new camaro will also.

[lil goat]

The GTO was gone before the GXP came out, last year was 2006, the G8 is a 4 door is the main reason they went with the different name. The GTO is still made in Australia as the Holden Monaro, it has received rave reviews world wide but the styling was never popular in the US, it is sold as the Vauxhall Monaro in England, even the guys on Top Gear loved it. The G8 in the new GXP version is a large comfortable 4 door sedan that competes with the BMW and Mercedes, and is faster than the Solstice GXP, 0-60 in 4.5 seconds stock, it also costs about half to a third what a comparable BMW or Mercedes cost. I really hope they keep 2 cars, we need the Solstice!

[BLK GXP]

If the G8 is indeed the one to live on; I wonder about the other variations of it like the ST that was supposed to come stateside in 2009. I'm sure they're still building the Aussie versions, but will they import them as G8's

[Sol Asylum]

The GTO was gone before the GXP came out, last year was 2006,

I ordered my 07 GXP in June of 06 with an original delivery of Sept 06 which would explain why there was in fact a GTO at my dealer when I bought the GXP.  I actually spent some time looking at it and was surprised at how much the gas guzzler tax on the car was, something like $3500.  Does the G8 have this same tax issue?

Aren't the G8's made down under too?  My original Question still stands what are the sales of the G8 like?

[BLK GXP]

I don't see a lot of G8's on the road, and the ones on the lot seem to hang there for a while. Though that is partly due to the current economy. I don't think they are selling quite as well as the general has hoped they would.

[baconbits]

There is 12 or 13 at our local delearship and they've been there since early summer

[Lucy'sDaddy]

I also hope that Pontiac stays with their 2 HOT cars, and drops the rest. It's a shame that the G8 is from down under. We need the jobs here, but the General can't seem to come up with the cars here that Holden does. The Kappa line is the exception, and the ONLY exception! Even the new Camaro is a Holden car, at least the concept. Canadian built, isn't it? Oshawa?

[Sly Bob]

I also hope that Pontiac stays with their 2 HOT cars, and drops the rest. It's a shame that the G8 is from down under. We need the jobs here, but the General can't seem to come up with the cars here that Holden does. The Kappa line is the exception, and the ONLY exception! Even the new Camaro is a Holden car, at least the concept. Canadian built, isn't it? Oshawa?

That's right, the Camaro will be build in Oshawa with the engines being built in St. Catharines. St. Catharines builds many of the engines that go into the Corvette as well.

[lil goat]

Lots of the people I know with GTO's are looking at the G8, from what I hear no one wants the stock or ST G8's everyone wants the 2009 G8 GXP, and they are scarce, they sell as fast as dealers can get them. Someone on that other forum drove one and posted about it. It is basically a 4 door Z06.