Confirmed: Pontiac is Dead, GM Drafts New Survival Plan

Following weeks of rumor-denial-rumor regarding the future of its brads, dealerships and even personnel, GM finally made public their survival plan for 2009. Simply put, under the "GM Accelerates its Reinvention as a Leaner, More Viable Company" headline, GM's plan is in fact a confirmation that Pontiac is out for good, dealerships will be drastically reduced and the manufacturer nameplates will be cut by 29 percent. But let's take them at a time.

Pontiac. If you read our previous reports, Pontiac was deemed as dead for some time now. GM initially denied, but today's plan is as clear as they get. "The Pontiac brand will be phased out by the end of 2010," said GM in an official release. So, goodbye 83 years of history.

Saab, Saturn, and Hummer. These three GM bad brands are out as well. Unlike Pontiac, GM plans to make money out of them and, despite the fact that the faith of the three is to be decided by the end of 2009, nothing is sure at this point. "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," the company stated.

Dealerships. We reported a few weeks back that GM will slash 1,700 of its dealerships across the US. That number is no longer correct, as GM will reduce "its U.S. dealer count from 6,246 in 2008 to 3,605 by the end of 2010, a reduction of 42 percent." That's 2,641 dealers nationwide, four years sooner that previously outlined in the February 17 plan.

Nameplates. As a result of Pontiac's demise and the selling of the other three brands, GM will reduce its nameplates count from 48 to 34. "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."

Good brands. General Motors will focus its future business on four core brands: Chevrolet, Cadillac, Buick and GMC, what the company dubs the "good brands". "This four-brand strategy will enable GM to better focus its new product development programs and provide more competitive levels of market support."

See the human cost of these measures here.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Daniel Patrascu
Daniel Patrascu profile photo

Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories