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GM mulling Pontiac sale?

06/04/2009, 4:18 PM

By Drew Johnson

Just a few weeks ago General Motors announced it would be winding down its Pontiac division by 2010, but the Detroit automaker could be having a change of heart. After declining one dealer’s offer to buy the Pontiac brand last month, GM CFO Ray Young has revealed the company would consider offers for the lame duck brand.

In an interview with Bloomberg Radio, Young said General Motors would be willing to listen to offers for the Pontiac brand. That is a reversal from last month when Tom Pyden, GM’s vice president of communications, told an ABC affiliate that GM had no interest in selling Pontiac.

“It’s not something we’re actively discussing, but to Ray’s point, everything’s on the table,” Pontiac spokesman Jim Hopson told The Detroit News.

However, there are several hurdles in the way that would make the transition from offer to purchase very difficult. Since the Pontiac brand is often lumped together with GM’s Buick and GMC brands, there are currently only 35 stand-alone Pontiac dealers in the U.S. One of the lures of buying an established car brand is to gain access to its distribution network, which is not in place with the Pontiac brand.

It’s possible GM could provide the ‘new’ Pontiac with vehicles in the short-term, but a willing buyer would eventually either have to come up with its own designs or find another supplier. But if a buyer emerges that is willing to deal with the brand’s limited dealer network and lack of future product, the Pontiac nameplate could be saved in its last hour.

GM has received at least one offer for the Pontiac brand, but it remains unknown how much that bid was worth. If GM decides it can make money on a Pontiac sale rather than letting it wind down, Pontiac could actually have a future beyond 2010.

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06/04, 4:24 PM

posted by:

ahnuconun

Magna should buy it and sell re-badged Opels in North America to compete with whoever buys Saturn. Then it would be a German-Canadian brand with an American-Native name.

06/04, 4:30 PM

posted by:

JakeK66

@ahnuconun

Nice idea, but I guess you didn’t read this article:

http://www.leftlanenews.com/gm-deal-blocks-magna-from-selling-opels-in-us-china.html

I for one would rather have Magna buy out Saturn and sell them as Opels, as I been preaching, but the Pontiac would work for it too, like I also been saying. Too bad GM has to be a dick about all this and block us from whatever is good out of Germany.

06/04, 4:39 PM

posted by:

bigs4610

pontiac should be GM’s opel import brand IMO

06/04, 4:40 PM

posted by:

bigs4610

please dont sell it GM
USE IT!

06/04, 4:44 PM

posted by:

ahnuconun

^Ya, I read that. I meant it hypothetically to illustrate the irony of Opel competing with itself if they go from re-badged Saturns to re-badged Pontiacs. Besides, the article wasn’t clear on whether GM blocked them from selling the Opel brand name or Opel designed and developed cars.

06/04, 4:48 PM

posted by:

bigs4610

gm needs a “youthful” brand to target customers in the years to come.
It sickens me to say this but even I, a GM loyal customer, have developed an interest in the Hyundai Genesis Coupe.
look at the Kia’s, Mazda’s they’re targeting the Millennial Generation that IS THE FUTURE of the auto industry. whats going to happen in the years to come when Johnny boy when he has a family of his own? Who has been influenced by Kia and their youthful cheap attractive sporty cars?
hes going to buy the next upscale Kia sedan, because he has had no attachment to GM products in his lifetime.

Its a crying shame really

06/04, 4:56 PM

posted by:

bigs4610

apologies for lack of proofreading.

06/04, 4:58 PM

posted by:

carstuff

Unless they can get a lot of money, which I doubt, they should hang onto the nameplate (because that is all they could sell is the badge) until out of debt and then sell special performance/low volume models.

06/04, 4:59 PM

posted by:

johnnycanuck

What exactly are they selling here? It isn’t a dealership network like Saturn. The brand has only one stand alone model (G8) that will likely just get a new nose and a different GM badge. And after decades of flogging mediocre fwd crap whose only distinguishing characteristic was yards of plastic lower body cladding I’m surprised anybody wants it. Pontiac as it exists now is so far from John Delorean’s gift of the GTO it’s not even funny. If someone wants it I say give it to them.

06/04, 5:08 PM

posted by:

hangonbig3

If a dealer network is what they want, there should be plenty of those properties for sale in a city near you…Buy the brand and buy up empty dealerships.

06/04, 5:10 PM

posted by:

yarddog82abn

>:(

06/04, 5:25 PM

posted by:

JakeK66

JohnnyC, why bring up JZ DeLorean? I’m already upset as it is to think of what GM could be if he wasn’t shunned away from them in the 1970’s.

06/04, 5:29 PM

posted by:

johnnycanuck

Jake, I hear ya, it’s like one giant bag of what ifs when you think of what GM has become and how they got here.

06/04, 5:57 PM

posted by:

Lariat Luxury Locomotive Liner No.3

The Chinese are buying Pontiac, and changing the name to Chintiac.

06/04, 6:47 PM

posted by:

beemerdude

All the lamenting over the passing of Pontiac has to do with models from decades ago (except for maybe the Australian–built G8). Does anyone really care for what is being badged as a Pontiac these days?? Come on now… Get real. No gives a poop about what Pontiac is in 2009. It’s all about memories from their ‘Golden Year’ in the 60s and 70s. (The 80s and 90s were disasters for Pontiac).

06/04, 7:13 PM

posted by:

carstuff

You know, someone could take a look at remanufacturing old Pontiacs and selling them. I know there are folks building brand new 57 chevies with modern powertrains. do the same with Pontiac.

Probably enough aftermarket vintage parts makers out there to build a bunch of classics. 2 or 3 years of GTOS, 3 or 4 years of firebirds, Solstice, etc.

06/04, 7:17 PM

posted by:

andy

hang on to it, then in 5 years come back strong and do it the way it was meant to be done, Trans Am/ firebird, another solstice like car, G8 or comparable, and some sort of hatch like the Astra and offer it with what ever the going HP is in 5 years for a performance hatch, maybe if the Volt technology has progressed enough, offer a fast electric car.
since the pontiac dealers will be gone, sell them on Chevy lots,

06/04, 7:24 PM

posted by:

RaineMan

In other words… “We need more money than we thought.”

06/04, 8:16 PM

posted by:

Blakkarr

If GM were going to restart PONTIAC, which I hope they do, they would say something about it before the end of the year.

If not, then I hope PONTIAC finds a good buyer and not some knob whose going to sit on it until hell freezes over in blue ice.

06/04, 8:23 PM

posted by:

writeeddie

Instead of closing down the GM dealers that are earmarked to be closed. Why not just consolidate them all into one network and sell just PONTIAC branding only. Sell it along with the brand to whoever wants to buy it as a package. Its only worth something to the buyer as a brand if it come with a network of retailers (ie. SATURN.)

Or keep them and position it to be SCION competitor, not CHEVY competitor.

06/04, 8:26 PM

posted by:

6ix

Let the mullet brand die already!!

06/04, 8:29 PM

posted by:

Ring-Taxi

Who knows, Maybe Pontiac will pull a Maybach and get revived 100 years from now.

06/04, 11:12 PM

posted by:

The Shock of the SVT Lightning F150

Buy Aston Martin the tooling used to tha Vanquish and give us a real GTO

06/05, 2:44 AM

posted by:

The Stig

If GM can get money for the name, great. If not Pontiac is better off the books, out of sight and out of mind.

06/08, 6:12 PM

posted by:

olds307

During it’s entire tenure, the Pontiac Grand Am sold like hotcakes, even when equivelant models from Buick and Pontiac languished….. so what does GM do? Drop the nameplate and change it to an unrecognizable and meaningless letter number combination, G6. GM needs to KEEP Pontiac (Buick/Pontiac/GMC dealers will be lacking products competitive to Ford, Dodge, Honda, Toyota, Nissan without Pontiac), and rename ALL the “G models”.

G8=Bonneville
G6=Grand Prix
G5= Grand Am
G3=LeMans

06/08, 6:12 PM

posted by:

olds307

errata: “even when equivelant models from Buick and Pontiac languished” should have been Buick and Oldsmobile

 
 
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