By Truman Lewis
ConsumerAffairs.com
April 24, 2009
Pontiac reaches the end of the road next week, as General Motors puts the finishing touches on its much-modified viability plan being drawn up as a White House task force waits with growing impatience.
Automotive News is reporting today that GM will announce early next week that Pontiac will be eliminated as a GM brand as part of the price of another additional $16.6 billion in federal bailout funds. GM has been surviving on an earlier $15.4 billion infusion of government money.
A statement on GM's Web site denied that a decision has been reached.
"Contrary to media speculation, General Motors has not announced any changes to its long-term viability plan or to the future status of any of its brands. GM is continuing to review its restructuring plan to go further and faster and best ensure its future success. Additional information will be released as any decisions are finalized," the company said.
GM had been saying that Pontiac might be retained as a "niche brand" consisting mostly of performance cars, but the trade paper says the latest plan leaves no room for the historic marque. The elimination of Pontiac, Saturn, Hummer and Saab will leave the once-might GM with four key brands -- Cadillac, Chevrolet, Buick and GMC.
Pontiac was introduced in 1926 and sold 896,980 cars during its peak year of 1978. It launched the U.S. muscle-car era with the legendary GTO of the 1960s.
It once produced a full line of cars but in recent years has been a shadow of its former self, basically selling what amount to rebadged Chevrolets and GMCs.
Dollars flow
GM got $13.4 billion in U.S. loans last December. The government agreed today to loan the company another $2 billion to keep it afloat while it assembles its viability plan.
"We appreciate President Obama's and his Administration's ongoing support of GM and the domestic U.S. auto industry as we undertake the difficult but necessary actions to reinvent our company. We will continue to work closely with members of the President's Auto Task Force throughout our reinvention and together we will continue to monitor our liquidity needs during this period," the company said in a statement.
