GM may discontinue Pontiac and GMC

[blue_onyx]

"General Motors Corp., facing a June 1 U.S.-backed bankruptcy, may drop its Pontiac and GMC brands as part of broader cost-cutting moves, people familiar with the discussions said.

GM’s Chevrolet, Cadillac and Buick brands are likely safe, said the people, who asked not to be named because decisions aren’t final. GMC and Pontiac are being studied as part of talks with an Obama administration task force assessing whether GM can be restructured without bankruptcy, the people said.

Shedding Pontiac or GMC would mean a deeper bite into GM’s portfolio of eight U.S. brands than in its Feb. 17 blueprint for keeping $13.4 billion in federal loans. GM said then it would keep Chevrolet, Cadillac, Buick and GMC and retain Pontiac as a niche line while selling or closing Hummer, Saab and Saturn.

GMC has a better chance of surviving than Pontiac, one of the people said. GMC sells only light trucks such as the Sierra pickup, while Pontiac’s offerings include the descendants of the brand’s high-performance models from the 1960s and 1970s. "

Continued at link

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aNdPp2_6j2CQ


I'm a little surprised GMC may be discontinued. Not that it's a horrible decision (they are basically Chevy) but GM seemed pretty committed to the brand.

[RB TexLa]

1. They'll keep GMC so Cadillac dealers can have trucks.

It makes a lot of sense to just have Chevy trucks but there is the perception that a dealer selling Cadillac and Chevy brands cheapens the Cadillac brand. And luxury vehicles on a truck format, ie the Escalade are very profitable. Part of the value of a luxury brand is real and part is perceived.

[Statistical]

3. They could (not that they will) rebrand GMC as GMC Truck

Only make trucks (no SUV). Make higher end trucks.

Otherwise keeping GMC & Chevy is waste of $$$. They are essentially identical product lines.

[RB TexLa]

4. True on both. There are going to be lots of these ideas floated out. I'd think everything and

every option is on the table as far as what a new GM looks like, including a split into "good" GM and a "bad" GM companies.

[rockymountaindem]

2. Not Pontiac!

They're the only cool cars that company makes besides the Cobalt.

[TTUBatfan2008]

8. I disagree!

I happen to think my 2009 Chevy Malibu is pretty cool. B-)

[blue_onyx]

11. Yes, it is

The Malibu is at the top of my list whenever I can afford a new car.

[TTUBatfan2008]

14. I highly recommend it...

Handles very well and looks cool. Gets good gas mileage. I recently had it parked at the airport and got several hail dents while I was out of town. :( I'm going to try to get it taken care of this week at some point.

[Romulox]

13. Nice car!

I want one. Just wish they offered a stick in that model!

[TTUBatfan2008]

15. Thanks...

I can't drive stick so automatic works great for me. The car handles really well and it looks cool considering it's a sedan. I used to have a Firebird but I got sick of putting up with all the minor BS (turn signals kept dying, etc.). I recently received hail damage on my Malibu while it was parked at the airport last weekend. Figures that I pay $30 per month at my apartment for covered parking and the one time it hails is when my car is at the airport unprotected. :(

[Spike89]

5. Am I missing something?

So, dropping a brand isn't the same as dropping a model, right? Dropping GMC doesn't mean losing the Cadilliac Escalade, right? Dropping Pontiac doesn't really mean that they can't rebadge any popular Pontiac models as Chevys, does it?

I once owned a GMC Vandura. It took Chevy parts just fine. Just how different is a Chevy van?

[Romulox]

6. The piece of the puzzle you may be missing is the dealership network isn't the same...

In other words, a GMC dealer may not be a Chevy dealer and vice versa. Which is why it will likely require a bankruptcy to avoid the dealer contracts with the "redundant" brands...

[blue_onyx]

10. Yeah, bankruptcy is coming

The 2 months weren't meant to create a new "viability" plan. It was time to put together the bankruptcy plan. GM is just deciding (with the task force's help) what to keep and what to sell/discontinue. The news said 1700 dealers would be gone by June 1st. That's a lot of dealers to get rid of in a month and a half.

[guitar man]

7. other than the nameplate

not much. About the only difference I've ever seen between Chevy and GMC is options. Of course, it's been years since I've owned either, but "back in the day" they were pretty much the same. As I recall, the interiors on the GMCs always seemed a little snazzier and GMC offered more heavy duty options like beefier springs etc. Other than that, they were the same trucks.

[Statistical]

9. The issue is GM has too many models

Something like 87 models (that is just domestic).

Toyota has what 12? If you include Lexus & Scion it is maybe 25.
Honda has maybe 16 models.

Like you said your GMC Vandura was essentially a Chevy van.
Both models won't survive.

So yeah some can be "rebranded" but 2/3 to 3/4th of all the models will go away forever.

[Winterblues]

12. GMC makes more than just trucks

GMC engines are in most Commercial fishing vessels in Alaska and many commercial rigs. Jimmys as they are often referred to are very common. I would hate to see them go as they are one of the easiest engines to maintain and operate.