GM to pull the plug on Pontiac
The brand credited with originating the muscle car will not be part of GM's future
NEW YORK (CNNMoney.com) -- General Motors is preparing to announce that the Pontiac car brand, once marketed as GM's "Excitement division," will be killed off, according to a source familiar with the decision.
An official announcement is expected Monday. GM spokesman Jim Hopson declined to comment on Pontiac's fate, saying the automaker has no announcements to make at this time.
In its most recent "viability plan" - which will be updated to reflect this new brand cut - Pontiac was not named as one of GM's four "core brands." Those are Chevrolet, Buick, GMC and Cadillac. But Pontiac was also not to be killed or sold off, as were Saturn, Saab and Hummer.
Instead Pontiac was to continue on as a "niche brand" focusing on just a few models.
That was already a step down for Pontiac which, in 2008, was the third-best selling brand behind Chevrolet and GMC. That year the brand sold more than Cadillac and twice as many vehicles as Buick. Cadillac is a high-profile - and high profit - luxury brand while Buick is a hugely popular brand in China and is seen as seen as resurgent in the U.S.
Today's Pontiac is part of GM's Buick-Pontiac-GMC brand channel, created in 2002, with the plan being that all three brands would be sold in combined dealerships. GMC would, as always, sell trucks and SUVs, Buick would sell value-oriented luxury models and Pontiac would sell less expensive, fun-to-drive cars.
In 2005, GM (GM, Fortune 500) vice-chairman Bob Lutz referred to Buick and Pontiac as "damaged brands" during a conference at the New York Auto Show. That set off speculation that one or both of these brands was doomed.
Buick's hopes have been revived by models like the popular Enclave crossover SUV which has eye-catching curvaceous styling. Improvements in Buick Quality, which earned a top ranking in a recent J.D. Power dependability survey and a public acknowledgement by Pres. Obama, have also helped Buick keep its place in the shrinking pantheon of GM names
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