Money Matters, Simplified.
GM bids adieu to Pontiac
by Anter Prakash Singh - November 1, 2010 - comments
By 2008 sales of Pontiac cars had plunged to 267000, less than a third of what it sold in 1968.
Pontiac cars, which once adorned the streets and drive ways across America, have been taken out of production by brand owner, General Motors (GM) on Sunday.
The brand was established in 1926 and did good business until a slump in sales in the 50s. It was revived by GM by linking it with car racing and from then, the name has become synonymous to speed.
Sales had been on a decline even before GM plunged into bankruptcy last year and changing consumer preferences and poor corporate strategies only brought the end near.
Pontiac, a heartthrob of 70s
At the zenith of its popularity in the 1970s, Pontiac models featured in many hit movies and came packed with power.
But by the late 1980s Pontiac cars were shedding its muscle car image and trying to imitate other cars and that’s when the brand lost its edge.
The Pontiac brand thrived after GM engineers put in a powerful V8 engine in a small car Tempest and the result was the most successful Pontiac, The GTO. The initials meant Gran Turismo Omologato, which in Italian means ready to race.
A retired GM executive, Bill Hoglund, who led the “we build excitement” campaign of the brand blames the strategy of the then CEO Roger Smith.
He combined Pontiac’s design, engineering and manufacturing with other brands. “There was no passion for the product. It had to fit what was going on in the corporate system,” stated Bill.
By 2008 sales of Pontiac cars had plunged to 267000, less than a third of what it sold in 1968.
Legendary GTO was also from Pontiac's stable
The Pontiac brand thrived after GM engineers put in a powerful V8 engine in a small car Tempest and the result was the most successful Pontiac, The GTO. The initials meant Gran Turismo Omologato, which in Italian means ready to race
The success of GTO resurrected the Pontiac brand, which formed 17 percent of the total sales of cars and trucks by GM in 1968.
The lack of a consistent strategy and ever changing leadership resulted in the decline of GTO. Different executives had different vision for the car with some even trying to make it a luxury car.
Putting some lesser powerful GM cars under Pontiac also proved detrimental. Economic shifts also hurt the brand and the two gas shortages in the 70s drove the Americans towards more fuel efficient cars, a field dominated by Japanese car makers.
“I miss it already” was the reaction of a disturbed Pontiac-GMC Buick dealer in Gurnee near Chicago.