Save Pontiac from Death

Savingpontiac.org Wants Your Support

Posted September 29 2009 11:22 AM by HPPCHRIS
Filed under: Pontiac News

Savingpontiac.org is an effort made up of executives and others who say they have a viable plan to save Pontiac.

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Check them out on the web at www.savingpontiac.org.

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Reader Comments:

1. Chris, I tried the link but it says the "domain is not found". I'd be interested to see what their plan is.
Steve

barneyformula - Posted September 29 2009 02:53 PM

2. I really hope they can do it. I just joined them today and contacted my representatives. I would like to see HPP do a full story on this and get out the good word.

kegstand77 - Posted October 1 2009 11:05 AM

3. btw.. The website is savingpontiac.org not savepontiac.

kegstand77 - Posted October 1 2009 11:18 AM

4. I have quickly scanned the business proposal and feel this is fantastic idea. It also appears somewhat naive compared to the ruthless giant GM has become. GM as it exists; appears to be so out of touch with it's market demographics that they would never have prepared for the message this sends in brand loyalty.

I was glad to see that, even after killing the brand, Pontiac mustered a quarter million in sales in the worst economic of modern history. In all the interviews I have viewed; Buick sales have been stated to be half of Pontiac's. Buick sale numbers, have noticed, always include the 120K+ vehicles sold in China. In my estimation the U.S. sales were possibly around 10K. The last good year for auto sales was 2007 and Buick managed sales of 100k vehicles in the U.S. I would find it highly unlikely that they would be the only division increasing in sales here. It just appears to me that the brand is dying a natural death. It has been one the most supported divisions by employing Tiger Wood's and PGA golf tournaments. I cannot grasp the perspective of China being sales volume bonanza for GM as they would like portray. When analyzed, it has to be recognized that China is a third world country with a huge population exhibiting great demand for western world products. Caused by years of consumer product demands that could not be supplied under a communist government. There are other brands in greater demand; it is just that they don't have to wait as long to get a Buick where demand is lower. Toyota and Volkswagen are far stronger in product demand. I am not convinced that people in this country are the least impressed that a third world country is basis for brand success. Furthermore, I really believe that these vehicles should be assembled here and exported to China. Isn't China the country we experience our largest trade deficit?

There were statements made about Pontiac profitability, without seeing the detail I surmise there is a bias in place based on the power of an upper level executive still carrying a divisional flag from the brand loyalty mindset that has driven GM for decades. My local dealership mentioned that they were told about excess capacity in manufacturing plants. Buick's are assembled, mostly with Chevrolet's, in plants where another brand contributes the largest volume production toward reaching break even.

Based on what I observe. GM earns more interest from financing the sale of Buick's to dealerships because the products remain on the lots for a longer period accruing interest. I have noticed there is a lot overlap in previous years unsold inventory with the brand. It has been acknowledged that it is considered an "old ladies" brand.

There has been published outrage from dealers based on lack of volume without Pontiac. Statements about not being able to survive. Pontiac dealerships have been attempting to establish franchises with other brands. I have been reading where GM attempted have them sign agreements to not to pursue competing brands in an effort to survive. This violates franchise laws in some states. I have been told GM has also attempted to appease dealer concerns by stating dealers would get future Buick's that look like Pontiac's. This could only further confuse buyers. This appears to be their approach in how they will attempt re-branding Buick. My marketing education tells me that successful re-branding of large products takes at least 10 years to accomplish in a good economy. Do they have that much time?

GM has only had mild success in re-branding Cadillac. The design changes for the DTS and STS models have not generated the volume seen in the CTS and SUV's.

From what I have observed and read; I surmise GM believes that they can re-brand Buick successfully only if Pontiac is out of the market.

GM has other major problems in the world. There has been little mention of how the German government dealt with them concerning Opel. When they were about to file bankruptcy; negotiations were held to "protect" Opel from proceedings. From what I have read, the German finance minister exited the meetings stating the company was insolvent and he had never seen a company so bad financially. He recommended government seizure and a sale of the assets. GM had previously declined an offer from Fiat whose product lines would have been the most compatible with Opel. Fiat had JDA's with GM during the due diligence period initiated by the attempted takeover by GM. The relationship ended by GM paying a penalty for withdrawing from the sale agreement.

After GM exited bankruptcy,the German government did not return operations of Opel. The government had provided 1.5 billion Euro loan for operations to a company that could not make payroll or finance day to day costs. Angela Merkel had become quite outspoken about her desire that ownership not be returned to GM. GM is now only a minority owner in what was their second largest brand by sales volume. It appears that they lost access to the medium and small car technology critical to support current products long term. I discovered that there existed a large amount of animosity between GM and the employee unions. This contributed in part, leading to the sale of Opel to Canadian Magna and a Russian bank. I don't thing GM's business model submitted to the bankruptcy court forecast this development. I have recently noticed how quickly the GM logo has been removed from Opel's website. The brand contributed over 2 million per year in vehicle sales. I would have guess that this will reduce GM in sales volume to less than Ford worldwide. Fiat brands will even possibly be greater. Add all this to the public embarrassment from the failure of an industrial giant.

I believe GM has a perspective on what would be required for "fixing" Pontiac's position in the market place. The critics and the consumers have spoken often and loudly about what they perceive to be required in producing a more desirable product. I have read more that once, that the only thing wrong with Pontiac is that it is a part of GM. Applying these improvements could lead to excess capacity in manufacturing to disappear. From my other observations, the volume in sales for the brand has held in spite of the short comings. Coupled with this show of consumer loyalty should not be ignored. The brand demographics also shops at the competitors before making a purchase. By competitor I don't mean another Pontiac dealer.

This could possibly become more interesting. Has there been noticeable success in getting the news release published in local newspapers?

I just felt like I should make some comments. Proceed with caution when approaching an angry injured giant.

We will not see an apology like we witnessed from Toyota. Unless, it is like the GM product commercial stating that the car is not a Lexus, not a BMW or an Audi. Then we listen to the commercials ending with an arrogant statement asserting that these brands will pursue this GM product as the new standard.

Let's not get into the issue about the use of French slang for nameplate use. It only supports my feelings that this corporation maintains a low level of respect for consumers.

Most importantly, I believe we need people concerned and organized enough to hold GM accountable. We as taxpayers are the major stockholders in the corporation.

Michael5714 - Posted October 9 2009 03:59 PM

5. We the taxpayer and loyal customer bail out gm a supposedely great AMERICAN company but because china wants buicks they get buicks and we lose Pontiac. why did we bail them out. I have stated my opinions at multiple gm fastlane blogs along with many other customers but gm just does not care about its customers... They kill Pontiac even when it is so odvious Americans want Pontiac over buicks. Look at sales
look at the fastlane blogs and look at polls. I would encourage all pontiac lovers to go to the fastlane blogs and keep em going and make a statement. Its amazing how long they are and some posts are positively entertaining. Now is not the time to roll over and let Pontiac die. If need be we need to unite and have a Pontic uprising nationwide car show right at their coporate headquarters.

Pontiaddict1 - Posted October 31 2009 08:42 AM

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