Pontiac Could Save GM
Today, the Wall Street Journal ran a story stating that GM could shutter many of its brands, not just Hummer, which the company has already publicly said is up for sale or closure because of tough economic times. The only two “safe” brands, the article states, are Chevrolet and Cadillac. Buick, GMC, Pontiac, Saturn and Saab are all up for discussion, meaning sale or the chopping block. It’s obviously too early to tell what will happen, but we can still speculate.
GM is already consolidating Buick, GMC and Pontiac dealerships into single stores. Buick has a hit with its Enclave crossover, but the other two brands haven’t a single success to point at. Saab has had little investment by GM and is most likely — after Hummer — to go the way of the dodo by sale or shutter.
Saturn has an all-new lineup, and GM has spent a massive amount of money relaunching the brand, but not much has taken hold. Only the Saturn Vue crossover has had much long-term success; the hybrid version has virtually sold out. Closing Saturn would be the biggest and hardest chop GM could make because of all that new investment. However, many of Saturn’s vehicles could head straight to Pontiac with a quick badge slap here and there.
A smart move for GM might be keeping the Buick/GMC/Pontiac triplets and axing Hummer, Saab and Saturn. Follow me here a second: Buick could pick up the upcoming Saab 9-4x crossover, and a new sedan to replace the LaCrosse is already in the works. With a solid sedan, a midsize crossover and the hot three-row Enclave, Buick would be pretty well-rounded. If GM had to cut even more, I could also see it killing Buick entirely and moving the Enclave to Cadillac, as well as shutting down GMC, which has no unique vehicles.
Pontiac has sold quite a few G6 sedans and Vibe hatchbacks lately. The company needs to build on that success. A new G6 could be imported from Europe, like Saturn had planned for its next-generation Aura. The next Saturn Astra could also become a compact Pontiac two-door hatchback and sedan (so as not to overlap with the Vibe). The Saturn Vue is a sporty crossover that could be rebadged as a Pontiac, but a Chevy version is already planned. That would mean Pontiac’s lineup would have a solid, sporty entry-level car in the Astra, plus the Vibe, a new G6 sedan and the powerful rear-wheel-drive G8, which might not sell well with high gas prices but would keep the performance aspect of the brand intact. Pontiac has already shown some creativity in advertising for the G8, has a lot of brand equity and a fan following.
That leaves GMC. It would be pretty easy to dismiss the nameplate because it sells the same out-of-vogue pickups and SUVs as Chevy. In that regard, GM could go nuclear and kill GMC and Buick, leaving just Pontiac to pick up the pieces. GMC still sells a significant number, though, of those out-of-vogue SUVs and pickups, and it doesn’t cost much to run the brand. However, even the costs associated with marketing and advertising might be case enough for GM to axe it, let alone the factory workers’ salaries.
Just think, though: Pontiac may be the sole survivor in a massive bloodletting, besides the core or Chevy and Cadillac. I’d rather GM wait to see how much really needs to go before any of these actions are taken, but most folks probably wouldn’t miss a Hummer, Saab, Buick or GMC. What do you think? How many could or should survive?
