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Old 10-13-2008, 01:07 AM   #34 (permalink)
t-rex
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Re: Merger, Who Is It Good For? A Big Al Rant

Quote:
Originally Posted by MisterMe View Post
Yes. In the last few months, we have seen numerous posts advocating the demise of Pontiac, GM's No. 3 nameplate in sales volume, and GMC, GM's No. 2 nameplate in sales volume. One wonders why don't they go for the trifecta and call for the demise of Chevrolet, GM's No. 1 nameplate. There is a reason why you don't let children play with matches.
It's not that some of advocating axing Pontiac don't like the brand. It's more that there's simply not a business case for it in today's market. Firstly, it's difficult to sell "performance" in an age that's becoming more MPG-conscious, and secondly, it's difficult to sell "performance" when you've got V6 family midsizers that scoot up freeway ramps with 0-60 times that put even some old "muscle cars" to shame.

Now that's not say to say there's not room for hairy sports models like the G8, or interesting smaller models like the Solstice. It's more that these vehicles could just as well be Chevrolet products. It's not as though the Chevy "SS" badge isn't revered amongst car fans.

The problem is, these types of vehicles don't sell in enough volume to justify the expense of administering and advertising for such a small brand. Now if Pontiacs sold at a high list price, there'd be a case for a low-volume, niche brand, but Pontiac has always been a solid blue-collar low-priced car, and sadly, the brand's reputation simply isn't strong enough to charge big bucks for, especially with economic uncertainty looming on the horizon. Pontiac would need about ten specialty "niche" models to keep volume enough to justify the brand, and GM simply doesn't have the resources to flush out a full lineup of performance-, or even sporty-themed, Pontiacs.

One idea tossed around by us armchair-product-planners is to graft twin nostrils onto Opels to flush out the bottom end of the Poncho line, and keep the hairier Holden-based models at the top. But that negates Saturn's existence. Saturn could be axed, but it could be argued that Saturn has a brighter future than Pontiac. Given Pontiac's huge percentage of sales to fleets, it's quite possible that Saturn is outselling Pontiac in the private market.

I've got a deep fondness for many great Pontiacs of the past, but like all but hardcore fans of the brand, most of those date from pre-1973. Pontiac's had a long, interesting history, full of ups (the 1960s) and downs (early 1980s). I'd suggest that GM gradually withdraw the smaller, FWD Pontiacs and just let the G8 run its current course, and let the proud Pontiac brand go down in a blaze of glory, having the last Pontiac off the line be a shiny top-of-the-line G8. I shudder to think of some lame G6 sitting on a floodlit plinth in a museum with a plaque noting it was the "last Pontiac off the line"...

As for GMC... that's a tough call. Two demographics are going to be really hit hard by an upcoming recession (which is all but inevitable at this point): the casual pickup truck buyer (the ones who created the truck boom in the first place) and upper-middle-income earners, who are arguably the most debt- extended. These are the bulk of GMC's customers.

With the likelihood of GMC's customer base — and profit base — vanishing in a deep recession, there's absolutely no use to keep the brand as a mainstream seller. If the customers keep coming, keep GMC, but if they dry up, as many are predicting, GMC may dry up as well. If that happens, I think GM should do what most on this forum suggest — turn GMC into GM's light-and medium-commercial duty arm. Let "Professional Grade" be something real, and not just marketing shtick.

Last edited by t-rex : 10-13-2008 at 01:10 AM.
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