Dying Days Of Pontiac

Pontiac's parent company, GM, has had well-publicized troubles over the past few years. After coming out of Chapter 11 bankruptcy, it planned to cut jobs, cut dealerships, get rid of Saab, Saturn, and Hummer, and phase out Pontiac by the end of 2010 due to slow sales.

Slow sales aren't an issue now; these days Pontiacs are selling briskly. Prices have been slashed and people are scooping up what few Pontiacs remain on the market, maybe 20,000 in all. The brand's last car, the Solstice GXP Coupe, had an extremely limited run and will likely have value to collectors for that reason.

GM now says it will allow Pontiac dealerships to close early if their inventories are depleted. Previously, GM had required that Pontiac dealerships remain open until January 1, 2010. That may now change. The company had expected to continue selling Pontiacs through the third quarter of 2010, but it now looks like the cars will be sold out before the end of 2009. GM has already stopped production.

"Cash for Clunkers" Effect

The "cash for clunkers" program helped spur Pontiac sales, leading to a larger-than-expected depletion of inventories. August 2009 sales of Pontiacs increased 2.4% over those of August 2008. GM executives have said, "we're well ahead of the game in terms of where we thought we would be" with respect to Pontiac sales.

Unclear Future

In May of 2009 Jim Waldron, a Michigan Pontiac dealer, offered to buy the Pontiac brand and logos. He said he had financing to buy them as well as some GM plants in which he could build new Pontiacs. Initially GM rebuffed the offer, stating the brand wasn't for sale, but after the company's bankruptcy Waldron indicated GM had softened its stance. The discussions continue.

Whatever its future, or lack thereof, Pontiac has a storied history, introducing many iconic cars and designs whose memories have lasted for decades. It produced the 1964 GTO which ushered in the muscle-car era the 1967 Firebird and the 1969 Grand Prix, huge hits all. It introduced the split grille design, the pointed 'arrowhead' nose, and the "grilled-over" or multiple-striped taillights. It was marketed as an athletic, performance brand and it will be remembered for the sexy, wide-track models it produced.