GM May Drop GMC and Pontiac to Meet Government Demands

"Oh, sure. Cut the performance (Performance! We can't have a performance division in an economy like this! People won't buy them because of their low gas mileage!) cars out just when they were starting to become interesting and soldier on with trucks and SUVs (because that's where the big money-makers are!)."

GM can still offer performance versions under the Chevy nameplate. Even you stated the only good product from Ponitac is the G8. Hopefully consumers and the market will never go back to the high demand of those huge SUV's. Priorities first.

"I guess the only thing to do with the G8 is bring it over to Cadillac and make it the next STS!"

Nope. Keep the STS a Cadillac and use a revamped or an evolution of the CTS chassis for the next STS. Offer the 3.6 DI as its base engine and have a 3.5 DI twin turbo 360-380hp) as its top of the line powerplant. V8 performance with V6 FE.

Tweak the styling of the G8 and give it to Chevy to use as an Impala/Impala SS replacement. I think the G8 would fit in Chevy's lineup much better than Cadillacs as the G8 as is, isnt sophisticated enough to be a Cadillac.

Ive always thought GMC was a waste of time and money anyway. Axe the GMC brand and replace the GMC models with Chevy's own while offering similar feature packages. Under the Chevy brand GM could offer the same or similar (GMC) package maybe at a slightly lower price? Makes sense to me.

Speaking of GMC if GM does kill it, what happens to the new GMC Terrain? Was my money wasted?

I agree with hondacura4.

Pontiac hasn't stood for performance for a long time. Let it die. GM would probably have slashed the division a long time ago if not for the franchise laws and all of the lawsuits that they would have been subjected to.

GMC needs to go too. There's nothing in either of those brands that Chevy can't accomplish with some different trim levels.

I'd prefer performance under the Chevy SS names. Pontiac has never interested me much.

Every market (and niche) segment that GM previously serviced, can be serviced by just two brands, Cadillac and Chevy. They don't need Pontiac, Buick (except maybe in China) or GMC.

So... They'll keep Chevy as their mainstream brand, Buick as their entry-level lux brand, and Cadillac as their luxury-performance brand. Gone would be: Saab, Hummer, Pontiac, Saturn, and GMC. I'd say that's a good move, in line with what Ford has done over the last several years.

Recall. Ford sold Aston Martin, Jaguar and Land Rover, and their controlling stake in Mazda. They've kept their mainstream brand (Ford), their entry-level lux brand (Mercury, although I'm not sure why), their high-end lux brand (Lincoln), and their euro brand (Volvo). And because of that additional cash flow they're in better condition than either of their domestic competitors.

If GM were to hone it down to just three distinct brands, I think they'd have a much better chance as sustaining themselves long-term.

I'm still up in the air in regards to Buick. I can see where Buick could fill a niche however I'm not sure if its worth the investement, at least here in North America.

Buick claims it wants to be seen as a competitor to Lexus, yet they dont have the brand image, full product line or the legendary Lexus customer/dealer service. On top of that wouldnt Buick in essence be somewhat invading Cadillacs turf in being another GM luxury brand?

I know Buick won't cater to the sport/luxury crowd as Cadillac takes care of that. However, I think Cadillac has the potential to cover all areas of the spectrum (sport/luxury and luxury/sport) without sacrificing its desired performance image. Cadillac does offer 3 suspension packages (CTS) that could appeal to all luxury buyers.

Why are people so hyped about killing GMC? What money will be saved? How much does it cost GM to make GMC trucks? Killing GMC just for the sake of reducing brands and then assuming all GMC customers will buy Chevys is short sighted. The Auto Team wants GM to shed brands no matter what, they aren't even really concerned with justifying the killing of additional brands. GMC is the 2nd best seller for GM and their vehicles are potentially profitable. Why would you kill that division?

Dammit! I love GMC.

I wrote long ago about the outcome of GM in the past and they brand me as a GM basher, import lover etc... The writing was on the wall but it took several economic factors to see the real outcome.

As for Pontiac and GMC. You have Chevy with Camaro, Cobalt SS & Corvette (more of a performance image than Pontiac to be honest). Just might sell the G8 as a Impala and fold up Pontiac for good and save some millions.

GMC? Is a Chevy with a GMC badge. Move the Denali brand to Chevy. Save money!

Buick? Cheap senior citizens car options for the Cadillac dealers.

That the government has to force GM to shut down Pontiac and GMC says a lot about the mindset at GM. They still haven't realized that they could completely disappear. The only way they will survive is if they radically rethink the company and reorganize the business. GMC, Buik and Pontiac should have been retired years ago. If the Buick name sells in China, rebadge a Caddy in that market and cut holes in the fenders.

While GMC doesn't add anything to the lineup, it does add to the bottom line. I'm amazed at how folks will pay huge premiums just because it says GMC on the front. If GM is smart, they'll capitalize on the namesake by offering a "GMC" package for a hefty price. It would include GMC labeling, midgrade Chevy rims, and a midgrade radio, all for a $5K premium. Just like what they do now!

"That the government has to force GM to shut down Pontiac and GMC says a lot about the mindset at GM. They still haven't realized that they could completely disappear. The only way they will survive is if they radically rethink the company and reorganize the business. GMC, Buik and Pontiac should have been retired years ago. If the Buick name sells in China, rebadge a Caddy in that market and cut holes in the fenders."

Pretty much everything you just said is flat out wrong. In case you missed it this entire thing is supposed to be about PROFITS. Gm is cutting the brands that historically have not been PROFITABLE. If Buick is profitable or close to it the brand should stay. GM shouldn't cancel brands just because you dont like them. GMC does not cost GM a lot of money at all. Why cant people see that?

Personally, I think that axing the Pontiac brand is a bad idea. It should be left purely for performance cars like the G8, Solstice, and something to fill the void from the GTO or Firebird and not for cars that are simply rebadged from the rest of the division. GMC should be its own lineup and not have all their products badged as Chevy's. If they are going to do something like that, then they should keep GMC. If they want to leave their larger pick-ups and SUVs badged as Chevy's then GMC should be axed.

Don't really see many G8s on the road, and they don't move me, seeing as how they are simply Holdens with a badge job. Hard for me to find passion about saving a badge job. The Solstice, however, was a true American effort, and it would be a shame to see it or the platform die. It was rough seeing the Oldsmobile Aurora die too. It was their best car ever.

If Pontiac has to go, I'd like to see the Solstice platform supported by Cadillac. Redo the top to make it a hard top convertible. Put a CTS quality interior inside of it. Ship it standard with the 300HP upgrade, and price it the same as a SLK300. And since it was the last true Pontiac design, I think they should keep the name and call it the Cadillac Solstice.

Yeah GMC definitely needs to go, totally redundant. Either that or Chevy Trucks needs to dissolve into just GMC. I know that the sales volume isn't there, so I understand why cutting Pontiac makes sense, but it is such a shame because outside of Cadillac, Pontiac probably has been developing the best image out of all the GM brands.

"Why are people so hyped about killing GMC?"

1487, Its not that people are hyped about killing the GMC "brand", (I'd rather not see them kill any GM brand) but from a certain perspective it doesnt make much sense in offering rebadged, feature packed products that for the most part overalap Chevy's (and Cadillacs) existing offerings. The same could be said for Mercury although its evident that Mercury doesnt have the same loyal customer base.

"Killing GMC just for the sake of reducing brands..."

Its not for the sake of just killing a brand but in some ways (you have to admit) it looks to be a better foundation for better business practices. Depends on how you look at it. GM as a whole is in a position to where they HAVE to consider all options as they cant be picky.

"assuming all GMC customers will buy Chevys is short sighted."

1487 I understand your frustration, but you have to understand for a lot of people here its hard to grasp or realize that GMC has such a loyal customer base given, in essence, its just a badge.

If GMC was killed, what makes you think the GMC loyalists wouldnt buy the same or similar equipped trucks/SUVs/CUV's under the Chevy badge? Id like to think that if GMC did die that its loyalists would pick an equivalent Chevy model over another domestic or foreign brand. I just dont see them running to Ford, Dodge or even Toyota because the GMC badge no longer exists. If that did happen, that validates they were in love with the badge not the product itself. However, the potential of loosing loyalists does remain part of the risk in GMC's death. I see it from both sides.

On the contrary (as you stated) GMC is the 2nd most profitable in GM's brand portfolio, so that does give them a reason to exist. If GMC could better distinguish their products from other GM brands while not upsetting its loyal customer base and remain 100% profitable, Im all for their existence. However, being a truck focused brand, especially in these times still makes me a bit nervous.

Im just throwing some ideas around....and trying to better understand GMC's full all around potential, product portfolio and customer base. Being business owners ourselves (I'm 1/3 owner of a historic structure renovation/landscape company, my wife has her dental practice), and we are always coming up with ideas about growth, remaining profitable and combining certain methods, practices, services and products to potentially save money without sacrificing quality or customer serivces and remain competitive with pricing and the competition. That my friend is how you successfully stay in business. Evolution is key.

What are your ideas on how or why GMC (or other GM brands) should live?

If they keep GMC, then kill Chevy trucks. You don't need both. You'll save money in marketing only one truck line (no duplicity in advertising, or in manufacturing different grilles, etc.). Make GMC truck- and SUV-only, and Chevy car-only.

If they don't do that, then kill the GMC brand.

To me this move wouldn't make sense. Not that I think it makes sense to keep all of GMC, and Pontiac, but if you are keeping Buick, that means that you aren't ridding yourself of any dealers to save cost. Instead of having GMC/Pontiac/Buick dealers you are just going to have Buick dealers. I know Buick makes money hand over fist in China, so maybe it would make sense to just leave Buick as an International brand, and not a US brand. That way you have Chevy, and Caddy, and that's it.

I personally like the style of GMC better than it's Chevy comparables, but it doesn't make sense to have so many duplicates across the brands.

Buick, if it survives, wouldn't be a stand-alone brand. It would be paired with either Chevy or Cadillac.

The Denali line is the designer level of vehicle, which is simply taking Cadillacs and putting a GMC badge on it. GMC could easily (in my eyes) go away.

I also agree that Chevy also has a better performance history and identity than Pontiac. A sedan replacing the Impala (using the Holden's mechanicals, making the car look "American") would work. Also, making it a Chevy would give it more exposure to people.

Cadillac has kind of morphed into a performance company this decade with the introduction of the CTS. It seems like everyone wants Cadillac to embrace the euro-fighter luxury-performance class and shed the retiree luxo-barges of the past.

I think Buick would fill the gap between Chevys and Cadillacs nicely. Remember how LeSabres were the best selling midsized car for more than a decade? I think every retiree down here in Florida had a LeSabre or a Park Avenue. I think that would be the key for Buick's future. And since there's going to be a lot of baby boomers looking for a nice barcalounger-on-wheels soon, Buick would be in a good position to catch all of them if they have the right product for the job.

I agree with most of the bloggers. GMC and Chevy are the same except for lights and grills. Chevy could offer fully loaded models with a GMC design and use the Denali name. That way GMC kinda lives on. Buick could also do very well. Offer Lexus level luxury at a lower price. They should move quickly though while the economy is down. If Hyundai can do it surely Buick can. This frees Cadillac to truly design and engineer cars that are completely different than anything else at GM that can compete with BMW and Mercedes. GM might want to consider selling Buicks and Caddys on the same lot. A lot of people who try for the Caddy but can't afford it would likely buy the Buick instead.