The End Of An Era
General Motors announced on Monday that the company will cut 21,000 hourly jobs and dissolve its Pontiac brand within one year. Once labeled as GM’s “excitement division,” the company that helped create the muscle car niche in the US auto market with the Lemans GTO in the 1960’s will soon be unceremoniously put to rest in a fashion similar to Saturn, Saab, and Hummer.
M has been surviving on federal loans for several months and is under pressure from the Obama auto task force to restructure by June 1 or face bankruptcy. GM’s fourth try at an approved viability plan reflects the decision to do away with Pontiac and focus on smaller more sustainable operations. Even though Pontiac was GM’s third best seller in 2008, GM decided to put a halt on Pontiac so the company can focus on what they call their “four core brands” Chevrolet, Buick, GMC, and Cadillac which GM views as the most profitable. GM also said that they will be restructuring their US dealer organization by getting rid of 40% of their dealerships by the end of next year.