BEHIND THE DECISION: GM Executive Explains Why Pontiac Died; Why Buick Will Succeed

[Perian]

Link: http://www.autonews.com/apps/pbcs.dl...73352857437812

A LETTER TO THE EDITOR OF AUTOMOTIVE NEWS FROM GM VP SUSAN DOCHERTY

SUSAN DOCHERTY, Vice President, U.S. Sales, General Motors Co., Detroit, October 26, 2009

To the Editor:

Regarding Robert E. Cherney's Oct. 19 letter, "Why kill Pontiac? Why keep Buick?": I'd like to assure your readers that phasing out Pontiac was one of the most difficult decisions of my career but also one of the most necessary.

Pontiac had been unprofitable for several years. A team, many of whom were passionate about the brand, tried in vain to save Pontiac and make it profitable -- but none of the scenarios proved viable.

We kept Buick in the General Motors family because it is highly profitable and will grow with new models for the next few years, giving Buick an offering in several sedan and crossover segments.

The Enclave is already a market success, with 50 percent of the buyers brand new to Buick. The 2010 LaCrosse is performing well, attracting younger buyers and those who are trading in imports like Lexus and Acura. And the 2011 Regal, a mid-sized sport sedan, arrives in U.S. dealerships in the spring. The Regal is already a hot seller in China and is based on the highly successful Opel Insignia, the 2009 European Car of the Year. A little further down the road, there will be a compact sedan and a small crossover joining the family.

We feel confident that we chose to save the right brand and that Buick has a bright future ahead of it.

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Link: http://www.dailypress.com/classified...,1290801.story

Auto Letters by Jim Mateja: No Solstice, Sky for GM

Q. If GM wants to find a younger demographic for the Buick and Chevrolet lines, why not insert the Pontiac Solstice and/or Saturn Sky into them? They have the ability to produce these vehicles and have spent the time and money in establishing their names. And Buick doesn't have a two-seater, while Chevrolet has the much more expensive Corvette. Why not cherry-pick the models that are attractive to younger buyers? -- B.Y., Palatine, Ill.

A. One reason for not keeping Solstice or Sky is that popularity in those roadsters peaked and had headed downward, said General Motors spokesman Tom Wilkinson. "The trouble with roadsters, except for Corvette and (Mazda) Miata, is that interest quickly cools once everyone who wants one gets one. Demand had slowed so much for Solstice and Sky, it was difficult to make a business case to keep producing them," he said, regardless of whether Pontiac and Saturn were still around.

And it's interesting that even before Roger Penske dropped his plans to buy Saturn, Sky wasn't in the mix.

Finally, there are the legal reasons, Wilkinson said. "There are strict laws about taking a car out of one franchise and putting it in another. That's why, when we closed Oldsmobile, there were some cars we would like to have continued but couldn't."

------------------------RELATED STORY-----------------------------

Link: http://wardsauto.com/ar/new_sales_chief_0901023/

Article quote:

New GM Sales Chief Inquisitive - By Steve Finlay

Despite the fact GM now builds some exceptional vehicles, too many consumers remember the bad old days. Public perception changes slower than the reality of the quality improvements GM has accomplished in a remarkably short time, after it finally regained its sanity.

So, Docherty has her work cut out for her as the head of U.S. sales operations for a bloodied but not beaten auto maker.

Despite the troubles it has seen, GM still has much brainpower and employs many sharp people. Sue Docherty is one of them.

[Perian]

Originally Posted by Perian

We feel confident that we chose to save the right brand and that Buick has a bright future ahead of it.

The Pontiac ship has sailed.

All we can do now is have faith in Ms. Docherty's statements and hope for the best.

Originally Posted by Perian

Despite the troubles it has seen, GM still has much brainpower and employs many sharp people. Sue Docherty is one of them.

Let's all hope so. The future of GM may in part rest in her hands.

[caddycruiser]

Pretty much what we already knew, just re-stated again.

Still, it leaves you to wonder, having ended so quickly, what the sketches/prototypes of "new" Pontiacs to come (think revised/new G6, etc.) are/were like, wherever they're at now. From the sound of things, it's almost like there wasn't much new of anything, other than the G6--they really didn't have anything else.

[civilzues]

Originally Posted by caddycruiser

Pretty much what we already knew, just re-stated again.

Still, it leaves you to wonder, having ended so quickly, what the sketches/prototypes of "new" Pontiacs to come (think revised/new G6, etc.) are/were like, wherever they're at now. From the sound of things, it's almost like there wasn't much new of anything, other than the G6--they really didn't have anything else.

I think you nailed it.

[avro206]

GM is solely responsible for Pontiac being unprofitable.

G5 was a pathetic version of the Cobalt. Which GM never did do an MCE on.

G6 was badly outdated

Grand Prix ditto

I'd like to hear why the G8 can't be done up as a Chevy and continue on. The new SDI V6 engines improved fuel economy.

[elgreen]

I hope she's not delusional about Buick's potential with a stable full of FWD appliances.

[member12]

I'm impressed at the investment thrown into Buick.

I know the Enclave and LaCrosse are great products- the Enclave is actually scheduled for a refresh soon.

The Regal is going to be very, very competitive. It looks amazing.

That's where I would have stopped for a few years. Keep those three models going, and keep them updated. I think the Regal will suffice for a compact until Buick is a house hold name again. I would have focused advertising on those three vehicles until Buick dealers have proven that they can actually sell them.

But what's important, since Buick is getting these new products for better or for worse, is that they are the best they can be. They aren't just thrown at Buick dealers so they can have cheaper products to sell....They have to be the best.

[dindak]

As much as I loved G8 and Solstice, I think GM made the right decision. Buick has great new models and is huge in China also, Pontiacs were mostly fleet cars and rebadged Chevy's.

[Masospaghetti]

I think it was unwise to kill Pontiac...they should have kept it as a true niche product.

They let it languish with the G3, G5, and G6. The G5 and G6 had untapped potential (G5 could have been positioned upmarket from the Cobalt, with the 2.4 HO and 2.0 SIDI Turbo motors only, but it was instead positioned BELOW the Cobalt - wtf? The G6 would have been competitive as well if was given a true MCE with a new interior and better powertrain options. Either the 2.4 DI or 3.5 V6 as a base motor with 6-speed auto and manual, with the 3.6 DI optional - not like these combos haven't been seen before in other GM products)

I don't see how keeping Pontiac as a niche with 2 or 3 (at most) vehicles would keep them unprofitable. They don't need their own dealerships. Hell, don't even advertise them much - and make them available at all dealerships. The Solstice and G8 would have been a good start. It would position the brand much like how Scion is used for Toyota.

Especially the G8, since its just a rebadged Commodore sold down under, could be sold here in low quantities and still justified, even if the price was relatively high.

[Masospaghetti]

Originally Posted by dindak

As much as I loved G8 and Solstice, I think GM made the right decision. Buick has great new models and is huge in China also, Pontiacs were mostly fleet cars and rebadged Chevy's.

Pontiac as we knew it needed to die, but they threw away an opportunity here by not making them a genuine niche player TRULY about affordable performance.

[D C]

So she's the one that gets to pen the letter explaining why Pontiac was euthanized without actually coming out and saying that the gov't forced GM to kill it.

[FierySolstice]

I don't buy this reason. Pontiac was unprofitable because they were starved for product and there was no real marketing for new product, ie G8. Buick soldiered on because mostly the older generations would always buy Buick. Once they die out, Buick will slow as well. The Enclave is long in the tooth already. The new Lacrosse is nice, but I'd rather spend a little more money and get a CTS. The Insignia should be the next Malibu, not a Buick. It's only a couple inches smaller than the Lacrosse. GM could of had Pontiac share platforms with Cadillac to make the cost for the platforms be less. I don't see Buick performing well at all. A company should only have ONE luxury divistion after all.

[K-1]

Originally Posted by elgreen

I hope she's not delusional about Buick's potential with a stable full of FWD appliances.

A "stable full of FWD appliances" worked just fine for Toyota/Lexus. In fact, they were raking in quite a bit of dough. With Chevy picking up the volume, each Buick they sell is like printing money.

[eaton53]

It ain't rocket science... Buick has China to drive volume. Pontiac didn't. Easy decision.
But... they need to find a place for the Commodore at one of the other divisions.

[Novak454]

Originally Posted by avro206

GM is solely responsible for Pontiac being unprofitable.

G5 was a pathetic version of the Cobalt. Which GM never did do an MCE on.

G6 was badly outdated

Grand Prix ditto

I'd like to hear why the G8 can't be done up as a Chevy and continue on. The new SDI V6 engines improved fuel economy.

Oh yes, and only offering the G5 as a 2-dr in the US (Canada got a 4-dr), and NO supercharged version...?
And least we forget the G3?
Other than (maybe) the Solstice, and (definately) the G8, Pontiac had been dead for years...