Since GM has no plans for the brand, Pontiac should be sold to the highest bidder. It's still a quite valuable brand, the funds could be used to help pay back the government loans. Since the government has a stake in GM via the loans, they should force a sale of the Pontiac brand. The buyer of Pontiac could then purchase the Saturn distribution network and bingo 450 instant stand alone Pontiac dealers. This would help GM to dispose of Saturn and let those of us that want to buy a Pontiac the chance to. I just emailed the idea to the White House as well.

Imagine what would happen if say, Porsche bought Pontiac.

 

Give me a business case for the Pontiac trademark that doesn't involve selling muscle-tees with pictures of Trans Ams.

The problem is that anyone buying Pontiac would inherit all of the negative (tastelessness, poor quality), and none of the positive (American Muscle).

If I was a Chinese manufacturer, I'd rather go with "Dong-a-Long-Ding-Dong Motors" than Pontiac.

 

Questions.

1. Why would anyone buy Pontiac?

Nostalgia? The rant of hard core fans? What business case, or how would you sell Pontiac as a business proposition. You most likely couldn't do it.

2. What would the structure of the purchase be?

You would still be dependent on General Motors to supply you the cars. The G8 is made in the same factories that make other GM products. G8 is made by Holden. Vibe is made by Toyota. Solstice is made at a GM plant that is operating at about 1/10 capacity. You'd have to pay GM for the engines and subsystems.

3. Then there's the question of new models.

The G6 is obsolete. Holden isn't going to simply "give" you the next Commodore to create a G8. You're going to have to invest in the new model yourself.


There is often the "Why don't GM simply sell...", yet the same poster doesn't realize that 3 things are important involving any idea to sell any automotive division.

1. There has to actually be this thing called a "Buyer".

2. There has to be a compelling reason to buy the said division. It actually has to benefit the company that's buying it. If a company already has it's own problems, it's going to look at you like you have a hole in your head if you go to them attempting to sell them on buying a car division. If they are doing very well, they aren't likely willing to take on a fixer-upper division. Again, they are going to look at you like you need a frigging lobotomy.

3. Finally, if you do find someone willing to buy a division, they are certainly looking for something that stands alone and doesn't need additional contact with the group selling it. Chrysler bought AMC to get Jeep. Daimler bought Chrysler to get Jeep and Chrysler's cash stockpile.


Nobody simply buys a marketing arm in which someone else sends them supplies. Whoever buys Pontiac will depend on the abilities of 2 companies (GM North America and Holden) to supply them cars.... while assuming 100% of the liability and warranty issues. They will also likely be forced to buy the grossly underutilizes plant the Solstice is made at.


You mention Saturn.

Saturn, although it's dealers and financers are attempting to pull something together, they are having a bear of a time. At the same time, what they are doing is creating nothing more than a distribution network that won't be limited to GM vehicles. In fact, GM is commited to discontinuing current Saturn vehicles within the next year or so. Whoever buys Saturn will have to create their own product lineup

Fiat is intrested in Saturn only because it has an established dealer network..... to sell it's own cars.

Bottom line is that the idea of selling Pontiac simply won't fly. If it was able to, then GM would be the first to be able to pull it off since they already have the resources, models, network, and marketing arm to make it happen.

Taking someone who is an outsider who simply buys GM's products, powertrains, and assembly parts and markets it under their own management is something GM could easily do anyway. If they aren't, then there's a reason.

 

Aww, isn't that a cute little idea. I'm sure the White House will get back to you soon, and so will Santa!

 

I have actually been thinking the same thing.

Pontiac certainly has as much or more value than the Saturn and Hummer names, and probably even SAAB.


All of the above were cut by GM BEFORE Pontiac... yet, Pontiac is the one not being shopped.

 

In a pure business sense, Pontiac has precisely zero value. There is nostalgic love for the name, but that does not translate into dollars and cents.

 

I think Holden should buy it & use it as an outlet for their products.

 

This

 

What company has the money and desire right now to get IN to the automotive industry and just needs a name? What cars would be called Pontiacs if someone did decide to buy the name? If you're thinking of someone buying the name and all or part of the current lineup, well I don't see why GM would be interested in continuing to supply the product... that would defeat the purpose of cutting Pontiac. I also think that GM could bring back the Pontiac name in a limited role if/when times get better.

 

You know, I was just thinking about this earlier today. Though Pontiac as an auto manufacturer will go away, GM will probably still make quite a bit of money off of the trademarks. There are all of those T-Shirts, hats, models, barstools, clocks, etc. And many restoration parts are made under license from GM, so I'm sure they get a cut of those, too. You could probably make a good living just owning the trademarks without even making any cars.

I agree as far as the value of the brand, but Pontiac is also the one that's hardest to sell on its own. The difference with Saturn, Hummer, and SAAB is that they all, in one way or another, started as entities separate from GM proper. This makes them, in the end, somewhat easier to separate from the larger organization.

Saturn, Hummer, and SAAB have dealer networks that another party could buy and utilize. There are only some 40 stand-alone Pontiac dealerships left in the country.

 

I kind of agree, but really all they probably need is the rights to the name "Pontiac".

Or hell, why doesn't Holden just sell them as a, uh... HOLDEN. I think it'd be cool to have Holden's whole lineup here. They make some awesome cars.

 

You do know that the year the Grand Prix took top honors in quality and reliability was also the year GM decided to kill the car, right?

Pontiac was doomed by GM's brass, but they don't have quality problems. Forget what happened in the 80's and early 90's because every GM car sucked.

Instead post 2000 Pontiac produced solid cars.

 

If GM closes Pontiac rather than sell the brand, they can still make money off of licensing on nostalgia memorabilia and merchandise.

Sell the Pontiac name, and they lose that capability.

Saturn and Hummer don't hold the same merchandising value and therefore should be sold while there still is some value left.

 

Pontiac is North America ONLY. Saab and Hummer are sold world wide. In the North America, yes, Pontiac means much more. Globally, it is Saab and Hummer.

 

As Guy said, in order to sell Pontiac you have to have a buyer. Can't see anyone lining up to buy, let's face it, a bit of a "damaged" nameplate at a time like this.

It freaking infuriates me what GM did to the Poncho brand. Pontiac could have out-Nissan'd Nissan if given the chance - sporty every-day cars with the G8 as the halo. Instead, another American Icon is laid to rest.