The Feds Killed Pontiac

It was a sad day for the fans of all makes of classic and muscle cars when they heard the news that the Pontiac brand was going away as part of the government’s restructured plan for GM back in 2008. At the time, the Pontiac brand was signaling some signs of a resurgence and a return to the days of it’s “We build excitement” motto. There were indications of new updates to existing vehicles like the GTO, the G8 and even rumors of a new Trans Am in the works. A new concept G8 Sport Truck similar to the old El Camino was seen at car shows and Pontiac seemed like it had a bright future ahead of it with a planned shift to an entirely rear-driven platform shared with the Cadillac ATS.

Although signs that Pontiac was on its way to once again becoming a performance brand were out there, some observers pointed out that at the same time, GM was revitalizing the Saturn line at Pontiac’s expense. The Saturn Aura received more sophisticated components than the G6 that spawned it and the Saturn Sky got higher-tech suspension upgrades before the Pontiac version of the same car (Solstice) did. Once the plans to terminate Saturn, Hummer and Saab were laid on the table, it seemed there was no reason that the Pontiac brand would not move forward with a lineup of powerful new, rear-wheel drive models. However, when GM applied for the federal bailout, the government stepped in, and then the brand was gone. Amid much rumor and speculation, the move to end Pontiac left a lot of enthusiasts wondering exactly why it was necessary to kill off the historic and once very profitable brand.

Fast forwarding to October 2013, we find there is a new answer to that question coming from someone who should know. When former GM Vice Chairman Bob Lutz discussed the fate of GM at a recent event held at the Petersen Automotive Museum in Los Angeles, he said that it was the U.S. government that killed off the Pontiac brand. Lutz’ admission shows that the government put enormous pressure on GM during the dark days of the recession. Although Pontiac appeared to be headed in the right direction at the time, and even today there is still not much explanation as to what the Feds did not like about the marque, Lutz lays the blame for the decision squarely on the government. Lutz said that Pontiac was “Clearly on its way back,” but that “When the guy who is handing you a check for 53 billion dollars says I don’t want Pontiac, drop Pontiac or you don’t get the money, it doesn’t take you very long to make up your mind.”

It appears that the government wanted GM reduced to just Cadillac and Chevrolet at the time, and that Buick was saved only because it was gaining traction rapidly in the Chinese market. The GMC marque was also spared because that brand had a different image, a different customer base, and it was still somewhat profitable. Lutz added that although he “Badly wanted to keep Pontiac, because Pontiac was on its way back”, when the Feds asked him “How much money have you made on Pontiac in the last 10 years?” and the answer was “None” the game was over. Apparently the Federal Government thought GM didn’t need all those brands, and told GM that “You only need one prestige brand and one mass-market brand.” For auto enthusiasts everywhere, it is difficult to watch Pontiac, or any other classic car brand go away forever. Now, we can only imagine what might have been if Pontiac had survived GM’s bankruptcy and began to one again “Build Excitement” based on an all new, rear-drive platform.