Another Sad Day for Pontiac & GMH..

[ozpont]

Pontiac, Saab, Hummer and probably Saturn .. all face the chopping block this week... this is already having a direct employment effect at Adelaides Holden plant.....


GM Said to Study Shedding Saab, Saturn, Pontiac to Win U.S. Aid


By Jeff Green and Greg Bensinger

Nov. 26 (Bloomberg) -- General Motors Corp. working to cut costs to win $12 billion in government loans, is studying whether to shed its Saturn, Saab and Pontiacbrands in addition to Hummer, people familiar with the matter said.

Selling or dropping brands would save money and reduce overlap as the biggest U.S. automaker struggles to avoid running out of operating cash by year's end, said the people, who didn't want to be identified because no decision has been made. GM's other U.S. brands are Chevrolet, GMC, Buick and Cadillac.

The review of the 82-year-old Pontiac division, one of GM's earliest, shows the scope of the survival plan being given to Congress on Dec. 2 to show GM can repay federal aid. GM also seeks to cut debt levels and reduce costs for active and retired union workers, people have said.

Chief Executive Officer Rick Wagoner is under a deadline set by House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid. Congress has scheduled a Dec. 5 hearing on a $25 billion auto-industry rescue and may vote the week of Dec. 8.

A GM spokesman, Steve Harris, declined to comment on what may be included in the Detroit-based automaker's plan.

Directors are scheduled to review a proposal Nov. 30 and Dec. 1, people familiar with the plans said. The automaker will prepare a 10- to 12-page public document and a private, more detailed plan of about 80 pages with background material, the people said. GM said Nov. 7 it may be short by year's end of the $11 billion minimum in cash needed to pay monthly bills.

Prodding From Congress

Members of Congress such as Republican Senator Bob Corker Jr. of Tennessee have suggested the automakers might benefit from being able to shed some of their dealers.

GM's eight U.S. brands are the most among the domestic automakers, compared with four at Ford Motor Co. and three at Chrysler LLC.
    The Hummer sport-utility vehicle unit was put on the block in June.
    GM agreed to eliminate the 103-year-old Oldsmobile brand in 2000 because of declining sales.

GM has 1,071 outlets for Pontiac, 400 for Saturn and about 105 for Saab among its 6,400 dealers, said Susan Garontakos, a spokeswoman. GM has been trying to combine Cadillac/Hummer/Saab and Pontiac/Buick/GMC brands into consolidated dealerships that would benefit from greater sales and lower marketing costs.

GM, which turned 100 this year, established the Pontiac division in 1926. The brand's sales peaked at 896,980 in 1978, according to trade publication Automotive News. That was the year GM sold 9.55 million vehicles worldwide, the highest ever, and came at the end of an era when Pontiac attracted notice for sports coupes such as the Firebird.

This year, Pontiac sales are down 21 percent, compared with a 15 percent industrywide decline through October.

Very Surprised

Combining Buick, Pontiac and GMC dealerships has "been working very well," said Randy Marion, owner of Randy Marion Chevrolet-Pontiac-Buick in Mooresville, North Carolina, and a member of GM's National Dealer Council. "I would be very surprised if they had any intention of getting rid of Pontiac."

GM established the Saturn brand in 1985, five years before selling the first vehicle. Most of the U.S. dealers are stand alone, according to GM. Sales reached a peak in 1994 at 286,003 units, according to Autodata Corp. in Woodcliff Lake, New Jersey. This year's deliveries are down 19 percent.

GM made its initial investment in Sweden's Saab in 1990 and took full control in 2000. Its sales climbed to a record 47,914 in 2003. In 2008, they're down 31 percent through October.

Cash Burn

Declines across GM's brands are adding to losses of almost $73 billion since the end of 2004. After burning through $6.9 billion in cash last quarter, GM said Nov. 7 that it had $16.2 billion as of Sept. 30. GM has said a bankruptcy filing would be a "disaster."

GM gained $1.25, or 35 percent, to $4.81 at 4:15 p.m. in New York Stock Exchange composite trading.
 

GM said Nov. 24 it has also delayed incentive payments to dealers, extended holiday shutdowns and announced plans to cut about 3,600 jobs early next year as production slows.

 

[joe74ta]

:mad::(:8

[ozpont]

.. in a nutshell.. if it survives.. this is the initial revamp GM's Boss but on the table to the lenders today... and the lenders are really .. .the taxpayers......

"G.M. said its plan would create a "new General Motors," that will be significantly smaller and more competitive.

   The company said it would sell off its Hummer and Saab brands, shrink its Pontiac brand into a niche vehicle division, and explore opportunities to sell, close or consolidate the Saturn brand that — when it was started in the 1980s — was supposed to be G.M.'s answer to the smaller, fuel-efficient cars sold by Japanese competitors.

G.M. also said it planned to reduce the number of salaried and hourly workers in the United States workers from 96,000 currently, to 65,000 to 75,000 by 2012. It will also reduce its North American factories from 47 to 36, and its dealers from 6,450 and 4,700."

[ozpont]

     In what is good & bad news.. or indepth informed speculation at least.... Pontiac will nearly be axed or branded over as a specialty vehicle.. while the rest of its model range.. including the still-born G3.. and there initself lays another reason these dickhead marketers need rooting.. for dropping and or abusing the marketing of great iron "brand names" like Bonneville, LeMans Catalina, GTO etc ... .. and replacing it with meaningless numeric's like G8, G6, G4, G3,.. or screwing p again when they realised they could not go back.. introducing... Solstice, Vibe & the prize for the Worst car of the new century.. the AZTEK.. ..

http://www.bloomberg.com/apps/news?pid=20601087&sid=aNlDpevePRtU&refer=home

[LeighP]

Sad about the Aztek, from everything I heard it wasn't a bad vehicle....just it was as ugly as you could build it. I know a couple of people in the US that bought used ones very cheap and they make a good 2nd car or commuter.
You'd think that the Edsel story would be required reading for all car manufacturers......lol.

[ozpont]

.. another SAD day for Pontiac .. the G8 "ST" or El Camino.. is dead..

.. sad cause this vehicle alone was more acceptable to a wide variety of "enthusiasts" and those that enjoy driving and versitility then any sedans on offer... it would have sat with pride at any show alongside modern icons like the new Camaro, the 300c & the Mustang...


http://jalopnik.com:80/5124488/pont...kyline=true&s=x