Bob Lutz reveals government ordered Pontiac's killing as part of bailout deal

[radioguy6]

Thanks Obama!

Bob Lutz, the outspoken former GM Vice Chairman, revealed in an interview Saturday that the Pontiac brand was killed off at the behest of the federal government. The surprising declaration took place during an “Inside the Motoman Studio” session at the Petersen Automotive Museum in Los Angeles.

According to Lutz, during the government bailout of General Motors following the Global Financial Crisis of 2008 and GM’s subsequent declaration of Chapter 11 bankruptcy, the feds wanted the automaker to cut everything but two brands. Cadillac would act as the premium brand while Chevrolet would serve as the sole mass-market brand.

However, Buick was granted a reprieve when GM made a case for the brand’s importance in China, where it remains GM’s strongest nameplate. If Buick was killed off in the US, Chinese customers would lose interest, explained Lutz. GMC was saved by proving that there was a distinct set of buyers who would not cross-shop Chevrolet and that its trim and options provided a substantial profit margin.

Lutz further explains that he personally fought for Pontiac and that it was on its way to becoming a true performance brand with an all rear-wheel-drive lineup. In particular, the next Pontiac G6 was to share a platform with the highly acclaimed Cadillac ATS, but with the premium content stripped out and dimensions similar to a BMW 3-Series.

Unfortunately, GM was forced to admit that Pontiac had not made any money in the 10 years prior to its 2009 demise. The government then gave the automotive giant an ultimatum to either kill Pontiac or forgo the $53 billion bailout. Lutz does acknowledge the fact that for many years Pontiac’s brand image was tarnished by badge engineering and excessive use of plastic body cladding.

The full interview and Q&A session can be seen in the video below. The revelations about Pontiac appear at 2:14:00.

Bob Lutz reveals government ordered Pontiac's killing as part of bailout deal | New and Used Car Reviews & Auto-Industry News & LeftLaneNews

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[Ear Rak]

Fuckers.

 

[Intel]

Somebody had to put it out of its misery.

 

[Mook]

Not like Pontiac had much going on... Aside from the g8.

 

[Intel]

the solstice also although not sure how well that even sold.

 

[rz79]

It did have the best acronym of any brand...

 

[Mook]

The solstice was good?

 

[Intel]

It wasn't badge engineered at least. Those were the only 2 I could think of that I couldn't buy from one of the other companies.

 

[Bob Kazamakis]

Gm had too many brands with too much overlap and not enough difference. I shed no tears for Oldsmobile or Pontiac going away. Gm's lineup almost makes sense now.....almost.

 

[Mook]

It was a pile of turds.

 

[Chester Copperpot]

Yeah read this on LS1GTO earlier. Pontiac was fucked regardless. A brand that, after the 70s, became a rebadged Chevy with no excitement save for the TA/Firebird. We're talking about a company where the Sunfire, Grand Am, and Aztec were what kept them floating.

The Vauxhall roadster(what the Solstice/Sky is based off) is pretty cool. It's a damn shame they went from "starting" the muscle car movement to being a bland plastic piece of shitbox manufacturer.

 

[Yaj Yak]

Lol i love the people caring about this Bahahahahahha ridiculous. Who gives a shit Lol.

 

[Mook]

Good looking car? Better slap a heinous beehive grill on it.

 

[radioguy6]

Pontiac was just starting to regain momentum to get the brand back on track, it was just too little too late. The G8 was a solid car and a positive outlook for Pontiac. I completely understand killing off a company not profiting though.

 

[Mook]

One car wasnt gonna fix a shitty company.

 

[MikeyLikesIt]

But kept Buick? hmmmmmm.

 

[Midn1ght Driv3r]

But kept Buick? hmmmmmm.

Buick/Oval is crucial for their International sales. The only other one they were considering getting rid of was GMC.

 

[willizm]

But kept Buick? hmmmmmm.

Because it's profitable in markets like china. Pontiac was dead weight and they only had desirable cars right at the end but it was too little too late.

 

[ktraver97ss]

I would have loved to see a G6 on the ATS platform with that turbo v6 but with a non-luxury interior and price. As much as I understand the cut I wish they could have hung in there and made some cool cars that were moderately priced.

 

[Gone_2022]

Only will make my already rare trans am more valuable later on in life...... I hope

 

[Mook]

It won't.

 

[Intel]

But... the heritage.

 

[Dragonkat]

Outside of the Firebird, & the Bonneville SSEI
Pontiac really didn't have anything else

 

[Lead Pipe]

I agree with KJ, who gives a shit? Pontiac died in 2002.

 

[Euro]

I would have loved to see a G6 on the ATS platform with that turbo v6 but with a non-luxury interior and price. As much as I understand the cut I wish they could have hung in there and made some cool cars that were moderately priced.

I agree, couple years of improvements I would've love to see the visions and plans Lutz had for Pontiac being an all RWD portion of GM. The last few years of Pontiac were pathetic, the Vibe and G3 were a disgrace to the once stellar nameplate.

A ton of people say the 80s and 90s were the start of the end of Pontiac, but I disagree. I'm not sure if that's because I love the Grand Prix and Bonneville from those decades, or if i'm just nuts