BREAKING: Pontiac could be dead as soon as Monday! Updated info 10pm today

[Exitspeed]

http://www.edmunds.com/insideline/do/News/articleId=146706

DETROIT — According to a source at General Motors, the company will announce next Monday its new "faster, deeper" reorganization plan, which will likely include a death sentence for the Pontiac brand.

Inside Line called Tom Wilkinson, news relations PR man for General Motors, who said: "There's nothing I can share with you at this time. Keep your eyes on our media site. Officially, nothing has changed with Pontiac's niche-brand status, until you hear differently."

The one-time "Excitement" division and creator of legends such as the GTO and Firebird was relegated to "niche" or "specialty" brand status by General Motors in its first viability plan in December of last year.

The company toyed with competing proposals to either turn the brand into GM's version of Scion or to make Pontiac a very focused purveyor of performance cars based around the critically well-received G8. But ultimately, Pontiac was chosen as the easiest to kill since it was cut from GM's self-defined herd of four "core brands," Chevrolet, Cadillac, GMC and Buick. Most Pontiac franchises have already been combined with Buick and GMC.

If true, Pontiac will join Saab, Saturn and Hummer as brands that will not survive GM's current troubles — at least not as a component of General Motors.

Inside Line says: Just as the G8 reawakened our interest in 83-year-old Pontiac, the brand falls victim to bad times and old mistakes. — Daniel Pund, Senior Editor, Detroit



Poor poor G8. After decades of the lame ass Grand Prix, Pontiac FINALLY gets a legit car and it's gone just like that. Well I guess those are going to worth a pretty penny.

[URLOZIN]

I don't see how they can go under. The g6's are pretty sweet and I see them everywhere. It will be a sad day if Pontiac goes under.

[Exitspeed]

I don't see how they can go under. The g6's are pretty sweet and I see them everywhere. It will be a sad day if Pontiac goes under.

A hole brand can't revolve around one car. That's the problem.

[Chalky]

Keep the Pontiac, ditch the Buick. It just seems to me that GM has the Cobalt to attract your adults and everything else in their portfolio is over 40/over50/over60 demographics wise.

Needless to say, I don't have a lot of faith in GM's decision making process.

[Rocket Power]

Sand the bird beak of the worthwhile cars they have and make them chevys. They should have done this a while ago along with killing GMC.

[michelle]

Bye-bye.
http://i212.photobucket.com/albums/cc2/bluemoonchild11/Waving/waving12.gif

[Goat Roper]

Sand the bird beak of the worthwhile cars they have and make them chevys. They should have done this a while ago along with killing GMC.


x2

[Karps TA]

If I was a Pontiac dealer and this happens so quickly, I'd load up all my Pontiacs on the lot and send them back to Detroit. Who wants to buy a car from a dead brand? The depreciation on the Old's once they killed them was epic. You'd be stupid to buy one brand new.

[nismodave]

Are all those Crappy Fireturds, and oversized RWD Grand Ams classics now?

[Josepy]

Are all those Crappy Fireturds, and oversized RWD Grand Ams classics now?

Fireturds? I see the junk you drive.

[URLOZIN]

Fireturds? I see the junk you drive.
You said it before I could.

[nismodave]

Fireturds? I see the junk you drive.

:rolf

[nismodave]

Calm down ladies, its a joke. :rolleyes: Jeesh

[Karps TA]

Mines been a classic for years. It's got the dust on it to prove it.

[jbiscuit]

did they end up getting rid of the Saturn brand then? If not I think that should go first

[LIZMO]

either way if it goes under that means it sucked. period.

[nismodave]

either way if it goes under that means it sucked. period.

No. I think the products are some of the better ones GM puts out. Poor management and letting the US Gov tell them what needs to be done is what is killing Pontiac.

[1997 Trans-Am]

so does this mean the Pontiac dealerships around the area are gonna close down?

[0TransAm0]

Fireturds? I see the junk you drive.

agreed...back on topic i agree with whoever said ditch the buick and keep pontiac...all buick's are is overpriced old folk cars..

[Burgandy85SS]

did they end up getting rid of the Saturn brand then? If not I think that should go first

X2 If I remember didnt they dump Oldsmobile to save those plastic pieces of shit?

[Plum Crazy]

Keep the Pontiac, ditch the Buick. It just seems to me that GM has the Cobalt to attract your adults and everything else in their portfolio is over 40/over50/over60 demographics wise.

Needless to say, I don't have a lot of faith in GM's decision making process.


They would never ditch Buick, Do you know how many old people drive those?? The average age on my block is 57, there are 6 Buick Centurys, 1 Regal and a Riveara(sp?) Plus Buick is HUGE in China. I love Pontiac, but half of its current line up is cloned Chevys (G5, Torrent, G3, G5)

[07ROUSHSTG3]

i find it awesome that the great General Motors is flopping like a fish about to suffocate on the asphalt.

time to trim the fat.

[Exitspeed]

Are all those Crappy Fireturds, and oversized RWD Grand Ams classics now?

RWD Grand Am's. lol. Pontiac hadn't had a RWD car since the Firebird untilt he GTO came along. That's one of the main reasons it's brand was lost. Pontiac should be a performance brand. But it's not because it's been watered down with the Grand Prix's, Grand Am's, Vibe (which is it's best selling car next to the G6), G6's, G3's, and G5's. Those cars don't say performance like the GTO, Solstice, and G8 have. Unfortunately it's a little too late.


did they end up getting rid of the Saturn brand then? If not I think that should go first

Not yet. Saturn may end up becoming it's own brand with GM provising products until 2012.


No. I think the products are some of the better ones GM puts out. Poor management and letting the US Gov tell them what needs to be done is what is killing Pontiac.

Two if the products definitely were. The Solstice, while not quit up to par with a Miata is still a very very strong competitor. There's very few who would argue that the Miata has the advantage int he looks department. The G8 is just ridiculous for the price. When you can say a $34k G8 can out perform a $85k V10 powered M5 you know that you are on the right track. Again however unfortunate GM waited to long to replace the POS Grand Prix with an actual performace car like the G8.


so does this mean the Pontiac dealerships around the area are gonna close down?

Yes. But not right away. Like the Olds closure it's going to take a long time to happen.


agreed...back on topic i agree with whoever said ditch the buick and keep pontiac...all buick's are is overpriced old folk cars..

That's easy to say if you are just thinking abut our market. But you have to realize that Buick is the #1 car brand in China. China being the fastest growing car market in the world. It's kinda hard to just say f*ck it when you knwo you have a gold mine across the sea.


X2 If I remember didnt they dump Oldsmobile to save those plastic pieces of shit?

Olds was dead way before Saturn and had nothing to do with Saturn directly. It lost it's image 25 years ago or more. Everyone of it's cars before it's demise was a badge engineered vehicle with the exception of the Aurora. Their 3.5 was waaay ahead of it's time though.

[07ROUSHSTG3]

saturn will die. dick bergstrom wouldn't have shut down 4 almost brand new facilities if there was a chance they would survive. it is a useless brand. they can't compete with the kia's and hyundai's of the world.

who really cares to see pontiac go?? you firebird faithful were abandoned a long time ago and again when the camaro over the t-bird came back. the gto/muscle car crowd were ashamed and embarrassed with the new GTO, and if you like the g6/grand am/grand prix, well you have other issues. it would be like ford saying that mercury will die!?!? no real loss, in fact probably a great thing for GM in my opinion.

[Plum Crazy]

agreed...back on topic i agree with whoever said ditch the buick and keep pontiac...all buick's are is overpriced old folk cars..


they really arent overpriced compaired to other vehicles aimed towards old people, the LaCrosse starts at 26,300 and the Lucerne at 30,030.

A Base STS starts at 47k and a DTS starts at 47k also

Lincoln Towncars starts at 46k
Mucury Grand Marquis starts at 29k


So if you are an elderly person, who 90% refuse to buy foreign, Buick is just right.

[Karps TA]

Buick has some of the most boring cars ever made right now. I went on a dealer trade last week and had the displeasure of having to drive a new Buick Lucerne. That car should not be legal to sell to anyone under the age of 65. What the Chinese see in the brand I'll never know.

If GM spent even a quarter of what they've spent on Buick/Hummer/Saturn over the last decade we wouldn't even need to have this discussion. But they treated the division like a red headed step child. As someone who grew up in a Pontiac dealership, it's sad to see what they did. And everytime they made a stride forward they'd give up on something, or make changes for the worse.

Personally Caddy is the only brand worth a damn at GM now other then the Corvette.

[Plum Crazy]

Buick has some of the most boring cars ever made right now. I went on a dealer trade last week and had the displeasure of having to drive a new Buick Lucerne. That car should not be legal to sell to anyone under the age of 65. What the Chinese see in the brand I'll never know.

If GM spent even a quarter of what they've spent on Buick/Hummer/Saturn over the last decade we wouldn't even need to have this discussion. But they treated the division like a red headed step child. As someone who grew up in a Pontiac dealership, it's sad to see what they did. And everytime they made a stride forward they'd give up on something, or make changes for the worse.

Personally Caddy is the only brand worth a damn at GM now other then the Corvette.


x2

[07ROUSHSTG3]

GM should keep chevy and cadillac. ford should ditch mercury and lincoln, and increase their stake in mazda.


dodge should go away forever.... never to be spoken of again.

[Plum Crazy]

GM should keep chevy and cadillac. ford should ditch mercury and lincoln, and increase their stake in mazda.


dodge should go away forever.... never to be spoken of again.

:rolf:rolf:rolf:rolf:rolf:rolf

what about Jeep?

[Chalky]

Buick has some of the most boring cars ever made right now. I went on a dealer trade last week and had the displeasure of having to drive a new Buick Lucerne. That car should not be legal to sell to anyone under the age of 65. What the Chinese see in the brand I'll never know.

If GM spent even a quarter of what they've spent on Buick/Hummer/Saturn over the last decade we wouldn't even need to have this discussion. But they treated the division like a red headed step child. As someone who grew up in a Pontiac dealership, it's sad to see what they did. And everytime they made a stride forward they'd give up on something, or make changes for the worse.

Personally Caddy is the only brand worth a damn at GM now other then the Corvette.

I thought you had to be 65 to buy a Buick! wow. I am 62 ,drive a C6 Z06 and when I come up on a Buick, I expect to see knuckles on a steering wheel and silver/blue hair or a bald spot behind the wheel. I pass quickly and give them a wide berth.

Point is, GM needs something between an entry level family car, used to be Chevy, and the senior, last car I will own, Buick. GM of the 50-60's had a cradle to grave mix of products. Not anymore!

[Exitspeed]

Man I'd love to get together with a bunch of you and have a round table on this subject over a few beers.

[mr.gone1985]

dodge should go away forever.... never to be spoken of again.


X2

[Plum Crazy]

Man I'd love to get together with a bunch of you and have a round table on this subject over a few beers.

Just remember it, and next time there is a Meet @ HWY, bring it up!

I owned a buick once, it was my first car, it was a 96 regal GS with a 3.8L, leather seats, air ride, it was loaded. I loved that thing. I used to get shit about the "Granny Cruiser" but it would beat a civic anyday.

[PB86MCSS]

either way if it goes under that means it sucked. period.

Only if it were that simple. Alot of other factors come into play.

[lordairgtar]

GM has divested itself of brands throughout its history
Little (became Chevrolet)
CarterCar
Elmore
Ewing
Oakland (Pontiac's sister brand)
Reliance and Rapid Motor Vehicle (became GMC)
McLaughlin (early Canadian Buick)
Yellow Coach (left GM to become Greyhound)
United Cities Motor transit (killed trolleys in most cities)
Marquette (Buick's sister brand)
La Salle (Cadillac's sister brand)
Viking (more expensive sister to Olds)
Scripps Booth
Statesman (Australia)
Acadian (Canada)
Asuna (Isuzu's brand in Canada)
Beaumont (Canada)
Bedford (UK)
Geo
Passport (another version of Subaru's Sidekick/Tracker)
Ranger (South Africa)
Oldsmobile

[Prince Valiant]

Are all those Crappy Fireturds, and oversized RWD Grand Ams classics now?RWD Grand Am's. lol. Pontiac hadn't had a RWD car since the Firebird untilt he GTO came along.
I believe Dave was literally talking about the 1980 and prior year grand am's that were oversized RWD turds, that are somewhat unlikely to ever be "classics."

Though I do have a fondness for the colonade style 73-75 Grand Am's with either a 400 or 455 v8.

[07ROUSHSTG3]

:rolf:rolf:rolf:rolf:rolf:rolf

what about Jeep?

sorry, i should have clarified. chrysler and dodge need to go away. Jeep will be fine. even though chrysler has watered down and essentially ruined the brand, someone will snatch it up. they should have 2 vehicles: the wrangler and the cherokee. thats it.

[Poncho]

Are all those Crappy Fireturds, and oversized RWD Grand Ams classics now?

oversized RWD grand ams? at least they made something cool that didn't appeal to middleschoolers

KIDDING

but seriously, I like how they love the new G8, when basically it's a 4-door GTO. Not entirely, but close enough.. Just like the camaro is a rebodied and shortened G8, and GTOs were used for the Camaros in the transformer movies.

[DocDave]

My guess is the will still make a fewcars like the G6 and just role it into the Chevy line of cars.

[Plum Crazy]

the easiest way for GM to do it is rename the G8 the Lumina SS just like in Saudi Arabia.(I hope they come up with a better name though)


http://i191.photobucket.com/albums/z28/alexkosterman/luminass1.jpg
http://i191.photobucket.com/albums/z28/alexkosterman/luminass.jpg

[xFullThrottlex]

the easiest way for GM to do it is rename the G8 the Lumina SS just like in Saudi Arabia.(I hope they come up with a better name though)






Wow, I know its the same car as the G8 but the Chevy looks 1,000,000 times better IMO. Would make a pretty cool Impala SS:thumbsup

[Exitspeed]

oversized RWD grand ams? at least they made something cool that didn't appeal to middleschoolers

KIDDING

but seriously, I like how they love the new G8, when basically it's a 4-door GTO. Not entirely, but close enough.. Just like the camaro is a rebodied and shortened G8, and GTOs were used for the Camaros in the transformer movies.

The GTO failed in America for two reasons. The main one was that they named it a GTO. While it certainly was worthy of being called a GTO the everyone expected a re birthed GTO to be retro styled. No Aussie Styled. That's the main reason. The other reason is they pissed too many people by switching from the LS1 to the LS2 after only one model year.


My guess is the will still make a fewcars like the G6 and just role it into the Chevy line of cars.

Chevy already has a Epsilon platformed vehicle, the Malibu. The G6 was getting long in the tooth and was really ready for a redesign. R&D has been stopped on any updates so it's going to be easy to let the brand just die.

I'm still bummed about the Solstice and G8 though. They are two of my favorite cars on the road right now. Man the Solstice GXP coupes are going to be worth a fortune.


the easiest way for GM to do it is rename the G8 the Lumina SS just like in Saudi Arabia.(I hope they come up with a better name though)


http://i191.photobucket.com/albums/z28/alexkosterman/luminass1.jpg
http://i191.photobucket.com/albums/z28/alexkosterman/luminass.jpg

I immediately thought about that car when I thought about Pontiac going under. Actually it would make a great Impala. I said this a few weeks ago on here. The Impala should be RWD anyway. It would such and easy switch. It would need a Malibu-ish front fascia though.

[Exitspeed]

Forgive the quickly done Chop but you get the idea.

Impala SS on a G8 platform.

http://img104.imageshack.us/img104/8945/impalag8copy.jpg

[Plum Crazy]

Forgive the quickly done Chop but you get the idea.

Impala SS on a G8 platform.

http://img104.imageshack.us/img104/8945/impalag8copy.jpg


now what if you chopped it to have the Camero(sp?) front clip?

[PureSound15]

now what if you chopped it to have the Camero(sp?) front clip?

Really? Camaro.


I just don't like GM's interiors compared to imports - so I'm hoping that in the end of all of this they are able to re-allocate some funds to that department.

[Exitspeed]

now what if you chopped it to have the Camero(sp?) front clip?

Well then it would look like this:
http://img261.imageshack.us/img261/8117/camarog8copy.jpg

Which is cooler then I thought it would look.

[Exitspeed]

Really? Camaro.


I just don't like GM's interiors compared to imports - so I'm hoping that in the end of all of this they are able to re-allocate some funds to that department.

You haven't been in any recently remodeled GM interiors then have you? The Malibu and CTS are literally some of the best interiors in the industry. A few years ago GM vowed to stop making bad interiors and what they've accomplished since then has been amazing.
Here's the Malibu.
http://www.2008-chevrolet-malibu-hybrid.com/images/2008chevymalibuinterior.jpg

And here's the CTS.
http://z.about.com/d/cars/1/0/p/A/1/09_ctsv_interior.jpg


The Cruze is by far going to have a class leading interior as well.
http://image.automobilemag.com/f/car-news/first-2011-chevrolet-cruze-interior-photos/10687760+cr1+re0+ar1/chevrolet-cruze-interior.jpg

I agree though up until now GM's interior designs have been piss poor at best.

[Irish]

I will say this, exitspeed has some photoshop skills!

[-stew-]

saturn will die. dick bergstrom wouldn't have shut down 4 almost brand new facilities if there was a chance they would survive. it is a useless brand. they can't compete with the kia's and hyundai's of the world.

who really cares to see pontiac go?? you firebird faithful were abandoned a long time ago and again when the camaro over the t-bird came back. the gto/muscle car crowd were ashamed and embarrassed with the new GTO, and if you like the g6/grand am/grand prix, well you have other issues. it would be like ford saying that mercury will die!?!? no real loss, in fact probably a great thing for GM in my opinion.

Agreed. GM had to pay the Canadian government something like $30,000,000 (thats thirty million dollars for the youngins that don't understand zeros and commas) in penalties and incentive repayment when they killed the f-body.

After handing the domestic performance market to Ford, GM realized they screwed up and brought the Holden here. And they couldn't give them away. Apologies to the GTO owners on the board, but the car was a joke. If style was food, those cars would be a boiled potato. They blended in with other cars on the lot. Also, more importantly from a business stand point; you couldn't get one with a v6. So everyone who wanted the performance but couldn't afford it, were left out in the cold. Between bland styling and performance that was merely on par with the competition the car only had one leg to stand on: it's name. And single exhaust? Seriously?

[wrath]

GM's interiors are WAY ahead of where they were 5 years ago.

Even my 07 G6 had smokin' interior compared to a Camry, Altima, or Maxima.

Some stuff is still lacking.


For giggles, sometime go sit in a Buick Enclave and then sit in an Acura MDX. You'd think you were in a 2002 Honda Civic when you stepped foot in the MDX after being in the Enclave. Guess which one is cheaper, has more horsepower, and a 6 speed transmission?

[Exitspeed]

GM's interiors are WAY ahead of where they were 5 years ago.

Even my 07 G6 had smokin' interior compared to a Camry, Altima, or Maxima.

Some stuff is still lacking.


For giggles, sometime go sit in a Buick Enclave and then sit in an Acura MDX. You'd think you were in a 2002 Honda Civic when you stepped foot in the MDX after being in the Enclave. Guess which one is cheaper, has more horsepower, and a 6 speed transmission?

Yes yes yes. It's good to see someone who recognizes how good there interiors are now.

Have you seen the Interior for the new Equinox? The previous gen was a total POS. The new one thought is really nice. I'm trying to talk my wife out of a Murano and into the Equinox.
http://trunk.thecollegedriver.com/Auto%20Shows/Chevrolet/Equinox/2010%20Equinox%20Int%20Dash.jpg

Compare that to a Murano...
http://www.houstoncars.org/wp-content/uploads/7563c722a896_9BBE/2009muranointerior.jpg

[Holeshot]

I wish I could have put it on paper or posted it on ls1gto.com back when the GTO was released from Holden. Told my wife back in 03 that Pontiac was done. My reasons were Pontiac wanted to be the first to bring back the RWD performance, but it was a waste. Why? The Monaro was slated to be nixed in 06 because Holden had just spent billions on the Commodore / G8. Holden was pretty much left alone by GM. Even though Holden is GM the Aussi's love there beloved V8 and it has been a big success. They hated the fact that the US marked wanted scoops on the bonnet of their beloved Monaro. If you are really interested in the whole Monaro GTO G8 story Jon we4 has so much info its beyond the imagination.

[WhatsADSM]

I will say this, exitspeed has some photoshop skills!

No shit right, those pics were pretty damn cool!

I agree the camaro front end looked a lot better than I thought it would.

[Holeshot]

Its official Pontiac is Dead. I just heard it on NBC Nightly News.

[PB86MCSS]

Thats the kicker, the fact it seemed GM was starting to make better quality cars over the years and better looking cars, overall....not with everything but no maker is perfect. It's the other factors and stereotype that any domestic car must be made shitty that takes years to get rid of.


hough I do have a fondness for the colonade style 73-75 Grand Am's with either a 400 or 455 v8.

The Pontiac Can Am was pretty cool, IMO. Big car but still would make a nice cruiser.

[LIZMO]

good thing pontiac is dead... they can't produce cars that start on fire on the freeway....
which happend today with a G6 around 5pm on 45 northbound...

[Exitspeed]

Its official Pontiac is Dead. I just heard it on NBC Nightly News.

Wow. I feel kinda sad actually. I'm bummed out.

I'm blown away that this thing with Pontiac happened before anything with Saab, Hummer, and Saturn. It just doesn't make sense. But it's real now boys and girls.

To the Pontiac folks...how does it feel to now own a collectors item?

[mr.gone1985]

Sad to see Pontiacs get cut. Two of my brothers and my father in law are Pontiac guys. It is a sad day for them I'm sure.

[Rocket Power]

To the Pontiac folks...how does it feel to now own a collectors item?As an Olds guy it doesn't feel any different, just have to get used to the "are you going to buy a new _____ , oh wait they don't make them anymore" jokes

[Exitspeed]

I was lookign around and none of the reliable sources I follow are reporting it's a done deal. CNNMoney is still reporting that "sources are saying". Nothing concrete yet.


As an Olds guy it doesn't feel any different, just have to get used to the "are you going to buy a new _____ , oh wait they don't make them anymore" jokes

I'm mad at myself for not being in postision to buy a G8 GXP right now.

[Holeshot]

General Motors PR rep Tom Wilkinson told Edmunds that he could not share any information but that media should keep an eye on the company's news website for updates.

Rumors have circulated since the initial stages of GM's viability plan that both Pontiac and GMC would be cut and it looks like the Pontiac rumors may finally be true - despite GM's continued insistence that the brand is safe.

I can read between the lines and apparently so can the news media

[Karps TA]

The Pontiac rumors are true, my mom said the dealership was told today.

[Goat Roper]

The Pontiac rumors are true, my mom said the dealership was told today.

What other line they carry?

[Holeshot]

It will just be Buick / GMC until the Bankruptcy goes through. :(

[PB86MCSS]

Apologies to the GTO owners on the board, but the car was a joke. If style was food, those cars would be a boiled potato. They blended in with other cars on the lot. Also, more importantly from a business stand point; you couldn't get one with a v6. So everyone who wanted the performance but couldn't afford it, were left out in the cold. Between bland styling and performance that was merely on par with the competition the car only had one leg to stand on: it's name. And single exhaust? Seriously?

Within 10-15 years those GTO's will be pretty collectible due to the lower numbers, good performance and from what I understand, pretty good quality too. G8's probably too. I think they might be comparable to Turbo Regals as far as holding value, etc. When muscle cars first came out (the original GTO was arguably the first), they weren't all about loud styling just a big engine in a mid size car that hauled butt. I think the latest GTO fit the bill nicely, understated somewhat but still nice looking. JMHO though. What did the GTO in was horrible marketing a lack of demand for a modern muscle car at the time, IMO. At least for how they were priced.

[LEWETHETIGER73]

And even though the had " single" exhaust it really was true dual exhaust but they went with the style of same side exit.

[Greg@GLD]

Real GTO's have Pontiac engines in them.

Even when they started putting Chevy engines in "Pontiac" products, I always thought Pontiac did a better job on styling that Chevy did with the F-Bodies from 1993 and up. Firebirds always looked cooler IMHO...

[wrath]

The SSR is already holding its value pretty well. GTO might hold up, but probably only the 6.0L/6speeds. G8, who knows. GXP might.

[Mr. Brett]

Shitty.

[MurphysLaw88GT]

I like the looks of the LS1 GTOs better.

[Exitspeed]

The SSR is already holding its value pretty well. GTO might hold up, but probably only the 6.0L/6speeds. G8, who knows. GXP might.

You know which one os gonna be worth a fortune? The G8 GXP 6 Speed's. Just assuming the brand is dead this model year there will only be a few months of production of 6 Speed G8's. The GXP is the only G8 available with a row your own option.

That and the Solstice Coupe GXPs. Those cars are gonna be raaaare.

[Holeshot]

GM to hold news conference Monday to announce brand changes, restructuring moves
Tom Krisher, AP Auto Writer
On Sunday April 26, 2009, 10:05 pm EDT

DETROIT (AP) -- General Motors Corp. will announce details of its massive restructuring plan on Monday, including the demise of its storied Pontiac brand, more factory closures and bigger job cuts as it fights to avoid bankruptcy protection.

The struggling automaker must make the announcement in advance of a planned offer to its bondholders to swap debt for company stock. GM owes $28 billion to large and small bondholders, and under Securities and Exchange Commission rules, it must disclose its operational plans before making an exchange offer.

Two people briefed on GM's plan said the company has decided to close more factories than the five it announced in February. But the locations of the doomed factories will not be identified Monday, said the people, who asked not to be identified because the plan has not yet been made public.

GM has several facilities in Ohio, including a major assembly complex in Lordstown, near Youngstown.

One of the people said GM will list specific numbers of blue-collar job cuts, and announce another round of U.S. salaried job cuts beyond the 3,400 completed last week.

Chief Executive Fritz Henderson has said the company will go further and faster in making its cost cuts to reduce the number of cars and trucks it needs to sell to break even. One of the people briefed on the plan said GM will accelerate many cuts previously planned for 2014 to instead take place between now and 2010, although specifics were not available.

Both people confirmed that the plan includes the death of Pontiac, famous for the Trans Am sports car and the GTO. Efforts in the last few years to market Pontiac as performance-oriented brand failed to work. The company had said it wanted to keep Pontiac as a niche brand with one or two models, but is buckling under tremendous government pressure to consolidate its eight brands, several of which lose money.

The people said GM won't have much new information on Hummer, Saturn or other brands, including Europe's Opel. GM has indicated it wants to focus on four core brands, Chevrolet, Cadillac, GMC and Buick.

Also to be announced Monday will be a target number for dealer reduction, as well as details of GM's bond exchange offer. But exact numbers were not available Sunday night.

The 9 a.m. EDT news conference will include Chief Executive Fritz Henderson, Chief Financial Officer Ray Young, North American President Troy Clarke and Mark LaNeve, vice president of North American sales and marketing.

GM is living on $15.4 billion in government loans and faces a government-imposed June 1 deadline to restructure or go into bankruptcy protection.

The government's restructuring demands include swapping at least two thirds of GM's unsecured bond debt for equity in the company. Such a move would help GM straighten out its debt-laden balance sheet.

Chrysler LLC, which is living on $4 billion in government loans and is expected to get $500 million more, faces a Thursday deadline to restructure and ink an alliance deal with Italian automaker Fiat SpA. The government also wants Chrysler to exchange much of its $6.9 billion in debt for equity in the company, but with the deadline fast approaching, Chrysler and its secured debtholders remain far apart.

Both GM and Chrysler also must win concessions from the United Auto Workers union. The UAW said late Sunday that it had reached agreement on concessions with Chrysler, Fiat and the U.S. government. Fiat CEO Sergio Marchionne was in the U.S. as talks continued for the automaker to take a 20 percent stake in Chrysler in exchange for its small-car technology.
__________________

[88Nightmare]

so why isnt GMC getting cut? they are simply rebadged chevys

[Exitspeed]

Offically Official! Pontiac is done. Press release below.

PRESS RELEASE:

FOR RELEASE: 2009-04-27

GM Accelerates its Reinvention as a Leaner, More Viable Company

Updated Viability Plan Speeds, Deepens Restructuring of U.S. Operations


DETROIT -- General Motors (NYSE: GM) today presented an updated Viability Plan that will speed the reinvention of GM's U.S. operations into a leaner, more customer-focused, and more cost-competitive automaker.

The Viability Plan is included in an exchange offer whereby GM is offering certain bondholders shares of GM common stock and accrued interest in exchange for certain outstanding notes.

Revised Viability Plan goes further and faster

The Viability Plan announced today builds on the February 17 Viability Plan submitted to the U.S. Treasury. http://media.gm.com/servlet/GatewayServlet?target=http://image.emerald.gm.com/gmnews/viewpressreldetail.do?domain=2&docid=52168. The revised Plan accelerates the timeline for a number of important actions and makes deeper cuts in several key areas of GM's operations, with the objective to make us a leaner, faster, and more customer-focused organization going forward.

Significant changes include:

* A focus on four core brands in the U.S. - Chevrolet, Cadillac, Buick and GMC - with fewer nameplates and a more competitive level of marketing support per brand.
* A more aggressive restructuring of GM's U.S. dealer organization to better focus dealer resources for improved sales and customer service.
* Improved U.S. capacity utilization through accelerated idling and closures of powertrain, stamping, and assembly plants.
* Lower structural costs, which GM North America (GMNA) projects will enable it to breakeven (on an adjusted EBIT basis) at a U.S. total industry volume of approximately 10 million vehicles, based on the pricing and share assumptions in the plan. This rate is substantially below the 15 to 17 million annual vehicle sales rates recorded from 1995 through 2007.

"We are taking tough but necessary actions that are critical to GM's long-term viability," said Fritz Henderson, GM president and CEO. "Our responsibility is clear - to secure GM's future - and we intend to succeed. At the same time, we also understand the impact these actions will have on our employees, dealers, unions, suppliers, shareholders, bondholders, and communities, and we will do whatever we can to mitigate the effects on the extended GM team."

Fewer U.S. brands, nameplates, and dealers

As part of the revised Viability Plan and the need to move faster and further, GM in the U.S. will focus its resources on four core brands, Chevrolet, Cadillac, Buick and GMC. The Pontiac brand will be phased out by the end of 2010. GM will offer a total of 34 nameplates in 2010, a reduction of 29 percent from 48 nameplates in 2008, reflecting both the reduction in brands and continued emphasis on fewer and stronger entries. This four-brand strategy will enable GM to better focus its new product development programs and provide more competitive levels of market support.

The revised plan moves up the resolution of Saab, Saturn, and Hummer to the end of 2009, at the latest. Updates on these brands will be provided as these initiatives progress.

Working with its dealers, GM anticipates reducing its U.S. dealer count from 6,246 in 2008 to 3,605 by the end of 2010, a reduction of 42 percent. This is a further reduction of 500 dealers, and four years sooner, than in the February 17 Plan. The goal is to accomplish this reduction in an orderly, cost-effective, and customer-focused way. This reduction in U.S. dealers will allow for a more competitive dealer network and higher sales effectiveness in all markets. More details on these initiatives will be provided in May.

Sales volume and market share projections

The Viability Plan anticipates improved financial results despite more conservative U.S. sales volume expectations going forward. The lower volume expectations are the result of managing the business with fewer nameplates and dealers, leaner inventories, and reduced market share. To address the inventory issue, GM on April 23 announced U.S. production schedule reductions of approximately 190,000 vehicles during the second and early third quarters of 2009.

The Viability Plan also reduces GM's market share projections to adjust for the impact of the brand and dealer consolidation, as well as for the short-term impact of speculation regarding a GM bankruptcy. The plan assumes a 19.5 percent share in 2009, with share stabilizing in the 18.4 to 18.9 percent range in subsequent years.

"We have strong new product coming for our four core brands: the Chevrolet Camaro, Equinox, Cruze and Volt; Buick LaCrosse; GMC Terrain; and Cadillac SRX and CTS Sport Wagon and Coupe," said Henderson. "A tighter focus by GM and its dealers will help give these products the capital investment, marketing and advertising support they need to be truly successful."

Lower structural costs, lower breakeven point

The Viability Plan also lowers GMNA's breakeven volume to a U.S. annual industry volume of 10 million total vehicles, based on the pricing and share assumptions in the plan. This lower breakeven point (at an adjusted EBIT level) better positions GM to generate positive cash flow and earn an adequate return on capital over the course of a normal business cycle, a requirement set forth by the U.S. Treasury in its March 30 viability plan assessment.

GM will lower its breakeven point by cutting its structural costs faster and deeper than had previously been planned:

* Manufacturing: Consistent with the mandate to accelerate restructuring, we plan to reduce the total number of assembly, powertrain, and stamping plants in the U.S. from 47 in 2008 to 34 by the end of 2010, a reduction of 28 percent, and to 31 by 2012. This would reflect the acceleration of six plant idling/closures from the February 17 plan, and one additional plant idling. Throughout this transition, GM will continue to implement its flexible global manufacturing strategy (GMS), which allows multiple body styles and architectures to be built in one plant. This enables GM to use its capital more efficiently, increase capacity utilization, and respond more quickly to market shifts.

* Employment: U.S. hourly employment levels are projected to be reduced from about 61,000 in 2008 to 40,000 in 2010, a 34 percent reduction, and level off at about 38,000 starting in 2011. This further planned reduction of an additional 7,000 to 8,000 employees from the February 17 Plan is primarily the result of the previously discussed operational efficiencies, nameplate reductions, and plant closings. GM also anticipates a further decline in salaried and executive employment as it continues to assess its structure and execute the Viability Plan. More details will be announced as soon as they are finalized with the various stakeholders.
* Labor costs: The Viability Plan assumes a reduction of U.S. hourly labor costs from $7.6 billion in 2008 to $5 billion in 2010, a 34 percent reduction. GM will continue to work with its UAW partners to accomplish this through a reduction in total U.S. hourly employment as well as through modifications in the collective bargaining agreement.

As a result of these and other actions, GMNA's structural costs are projected to decline 25 percent, from $30.8 billion in 2008 to $23.2 billion in 2010, a further decline of $1.8 billion by 2010 versus the February 17 Plan.

Strengthening GM's balance sheet

Another key element of GM's restructuring will be taking the necessary actions to strengthen its balance sheet. GM today took an important step in improving its balance sheet by launching a bond exchange offer for approximately $27 billion of its unsecured public debt. If successful, the bond exchange would result in the conversion of a large majority of this debt to equity.

"A stronger balance sheet would free the company to invest in the products and technologies of the future," Henderson said. "It will also help provide stability and security to our customers, our dealers, our employees, and our suppliers."

Another important part of improving the balance sheet will be the ongoing discussions with the UAW to modify the terms of the Voluntary Employee Benefit Association (VEBA), and with the U.S. Treasury regarding possible conversion of its debt to equity. The current bond exchange offer is conditioned on the converting to equity of at least 50 percent of GM's outstanding U.S. Treasury debt at June 1, 2009, and at least 50 percent of GM's future financial obligations to the new VEBA. GM expects a debt reduction of at least $20 billion between the two actions.

In total, the U.S. Treasury debt conversion, VEBA modification and bond exchange could result in at least $44 billion in debt reduction.

Throughout the Plan, GM will continue to make significant investment in future products and new technologies, with an investment of $5.4 billion in 2009, and investments ranging from $5.3 to $6.7 billion from 2010 to 2014. Very importantly, development and testing of the Chevy Volt extended-range electric car remains on track for start of production by the end of 2010 and arrival in Chevrolet dealer showrooms soon thereafter.

"The Viability Plan reflects the direction of President Obama and the U.S. Treasury that GM should go further and faster on our restructuring," Henderson said. "We appreciate their support and direction. This stronger, leaner business model will enable GM to keep doing what it does best - provide great new cars, trucks and crossovers to our customers, and continue to develop new advanced propulsion technologies that are vital for our country's economy and environment."

[xFullThrottlex]

Boy does this bring me back to the feeling I had when they cut Olds.

So The United States side of GM is now just Chevy,Caddy,GMC,Buick?

[DirtyMax]

so why isnt GMC getting cut? they are simply rebadged chevys

I often wondered the same thing. The simple subtle styling changes and what-not probably cost a fortune.

[wrath]

so why isnt GMC getting cut? they are simply rebadged chevys

GMC makes them a lot of money. Pontiac sells a lot of cars, it definitely isn't GM that is shutting down Pontiac.

If rebadging was a bad idea we wouldn't have Mercury, Lexus, Acura, or Infiniti.

[jbiscuit]

Pretty sad to see Pontiac go. I still wish they could have hacked Saturn, Hummer and even GMC first

[Karps TA]

The qoute that bothers me the most is in the first new release

"Efforts in the last few years to market Pontiac as performance-oriented brand failed to work"

Effort? When did they put any effort into making a Pontiac into a performance brand? Having 1 car the GTO and then G8 in the lineup as a performance car being considered effort, would be like saying you want to lose 50lbs but the only change your making is drinking diet soda.

They haven't put any effort into the brand in years besides making changes to the bodies to make them more obnoxious.

They should have gone forward with the plan to make Pontiac all RWD. Atleast that would have done something and made Pontiac stand for something as a brand. succeed or fail atleast that would have been actual effort.

[07ROUSHSTG3]

they should kill gmc also. not only would it save money, they would also be able to claim the best selling pickup and suv.

[DirtyMax]

If rebadging was a bad idea we wouldn't have Mercury, Lexus, Acura, or Infiniti.

3 out of 4 of those involve a lot more than just rebadging. They're a complete and definite step up in comfort, design, quality, etc.. The GMC-Chevy transition.. not so much. Pretty much just a grill change in most cases...

[som2002]

R.I.P Pontiac.http://www.fquick.com/images/smilies/s_usa.gif

[wrath]

they should kill gmc also. not only would it save money, they would also be able to claim the best selling pickup and suv.

Why would they save money? It doesn't cost them nearly anything other than design time to order 700,000 Chevy emblems and 400,000 GMC emblems as it would to order just 800,000 Chevy emblems (because they'd probably lose 75% of the GMC customers).

You MUST remember, GM doesn't make much of its own stuff anymore. And when you're talking about the kind of volume they do, it would probably only save them $.00001/part to buy them in bulk. Keep in mind, they'd likely have to order from the same vendors they currently do because those suppliers can only do so much volume anyway.


3 out of 4 of those involve a lot more than just rebadging. They're a complete and definite step up in comfort, design, quality, etc.. The GMC-Chevy transition.. not so much. Pretty much just a grill change in most cases...

What are you talking about? Nissan/Infiniti, Toyota/Lexus, Honda/Acura, Ford/Mercury are all the same shit with different stench. Just like what GM does.

I dare you to go sit in a Saab 9-3, Pontiac G6, Saturn Aura, and a Chevrolet Malibu. All different. Do the same thing for the Buick Enclave, Saturn Outlook, Chevrolet Traverse, and GMC Acadia. In the case of all these vehicles you have entirely different target markets.

Heck, for sheetmetal on the GMT900s the only thing the same are the cabs/doors/tailgates.

[Windsors 03 Cobra]

Surely making all the dies for all that plastic badging costs GM a million dollars per re-deisgn. I have always found the GMC name a bit dumb as its the same name as the parent company ? And the trucks are the same as a Chevy, a horn cap on a chevy wheel and some letters onm place of a bow tie makes not a different brand.
At one point GMC was building a decent city bus so I let the stupidity slide. None the less badge engineering is dumb in Merc's case, it was dumb in Plymouth's case and its dumb for GMC to do it as well.

Badge engineering costs plain and simple GM=No Money, cut costs.......

R.I.P. Cheif Pontiac.

[wrath]

Surely making all the dies for all that plastic badging costs GM a million dollars per re-deisgn. I have always found the GMC name a bit dumb as its the same name as the parent company ? And the trucks are the same as a Chevy, a horn cap on a chevy wheel and some letters onm place of a bow tie makes not a different brand.
At one point GMC was building a decent city bus so I let the stupidity slide. None the less badge engineering is dumb in Merc's case, it was dumb in Plymouth's case and its dumb for GMC to do it as well.

Badge engineering costs plain and simple GM=No Money, cut costs.......

R.I.P. Cheif Pontiac.

I'll try all capitals since nothing else seems to work.

GM DOESN'T MAKE ANYTHING OF THEIR OWN. Pretty much engines, transmissions, and some sheetmetal. Not even all of it. They don't even make their own fawkin' wheels and those are about the easiest things on earth to make. GM actually builds very few of its own parts anymore.

Heck, GM pays OTHER COMPANIES to sort the parts that are coming in.

[Prince Valiant]

I'm really struggling to figure out why wrath isn't an high level executive for GM.

[Windsors 03 Cobra]

GM buys/builds all the tooling for those worthless 2 cent emblems and tooling is the expensive part to make those worthless 2 cent badges.
And with 9 weeks of free time those suppliers are beating down Toyota and Honda's door down looking for work.

IMO Solara>G6 and G37>G8 :thumbsup and I hate foreign cars. New Bu looks nice I guess. ;)

[PB86MCSS]

Real GTO's have Pontiac engines in them.

The Camaro died in 97' then too among other things, to me the LSx motors aren't anymore Chevy than they are Pontiac.

[TransAm12sec]

My sister felt the need to call and console my father and I, haha.