GM is in trouble. This isn't news. First the F-Bodies, then Oldsmobile, and now rumors are running around about how Pontiac and/or Buick should be the next to go. Here's more on it than most of you will want to read, but it fairly comprehensively rounds out GM's current problems.
http://www.businessweek.com/magazin...mpaign_id=nws_insdr_apr29&link_position=link1
A lot of GM's problems are rooted in the simple fact that GM is too large. Too many competing product lines (and worse, too many identical models that compete), too much bureaucracy to adapt to the market, and too much in the way of non-cash legacy costs ("At a meeting with mid-level managers last December, Wagoner described the strategy of engineering cars to use up production capacity as a "legacy cost," says one manager who heard the presentation."(From BW article) And remember, they have to pay one way or another, according to their union agreements).
Now, the solution I have for GM would never have worked with Olds, and would not work with Buick either. But Pontiac used to be "Driving Excitement." How many people are STILL bothered that there is no Camaro or Firebird? And how many dislike the "new" GTO, but would buy one if it was "done right?" I don't think its sales have been wonderful, either. But it's gotten great reviews, and it really is a great car--just ask the Aussies. Can anyone see where I'm going with this?
I think GM should not shutter Pontiac--I think they should sell it. And not all of it, either, just most of it. They'll get cash, and if it's successful, they'll keep getting cash. They maintain enough interest in it to feel comfortable sharing technology (ie the GTO's new 6.0L vette engine, and hopefully the 427 someday, too) not just now, but int he future, too. But Pontiac is freed from the Titanic-like turning radius, and is free to develop cars people actually WANT! WHAT A NOVEL IDEA! Instead of a write-off of several BILLION DOLLARS, they get CASH and (hopefully) future profitability! In addition, they achieve economies for some of their newer (ie still expensive and needing-to-be-paid-off capital investments) investments, and someone else is free to capitalize on Pontiac's rich heritage. Union employees keep their jobs (maybe not under union contract anymore, one may hope, but they still have jobs nonetheless), and the factories don't go to waste either.
Now, my vision for how this would work would initially be like Shelby's or Saleen's relationship with Ford, or HSV's with Holden, transitioning into a more Maserati and Ferrari type relationship. But I don't think GM just has to just take it in the shorts. I think there are creative ways around it, that may benefit GM, billionaires with a yen to enter the car business, and auto enthusiasts alike.
http://www.businessweek.com/magazin...mpaign_id=nws_insdr_apr29&link_position=link1
A lot of GM's problems are rooted in the simple fact that GM is too large. Too many competing product lines (and worse, too many identical models that compete), too much bureaucracy to adapt to the market, and too much in the way of non-cash legacy costs ("At a meeting with mid-level managers last December, Wagoner described the strategy of engineering cars to use up production capacity as a "legacy cost," says one manager who heard the presentation."(From BW article) And remember, they have to pay one way or another, according to their union agreements).
Now, the solution I have for GM would never have worked with Olds, and would not work with Buick either. But Pontiac used to be "Driving Excitement." How many people are STILL bothered that there is no Camaro or Firebird? And how many dislike the "new" GTO, but would buy one if it was "done right?" I don't think its sales have been wonderful, either. But it's gotten great reviews, and it really is a great car--just ask the Aussies. Can anyone see where I'm going with this?
I think GM should not shutter Pontiac--I think they should sell it. And not all of it, either, just most of it. They'll get cash, and if it's successful, they'll keep getting cash. They maintain enough interest in it to feel comfortable sharing technology (ie the GTO's new 6.0L vette engine, and hopefully the 427 someday, too) not just now, but int he future, too. But Pontiac is freed from the Titanic-like turning radius, and is free to develop cars people actually WANT! WHAT A NOVEL IDEA! Instead of a write-off of several BILLION DOLLARS, they get CASH and (hopefully) future profitability! In addition, they achieve economies for some of their newer (ie still expensive and needing-to-be-paid-off capital investments) investments, and someone else is free to capitalize on Pontiac's rich heritage. Union employees keep their jobs (maybe not under union contract anymore, one may hope, but they still have jobs nonetheless), and the factories don't go to waste either.
Now, my vision for how this would work would initially be like Shelby's or Saleen's relationship with Ford, or HSV's with Holden, transitioning into a more Maserati and Ferrari type relationship. But I don't think GM just has to just take it in the shorts. I think there are creative ways around it, that may benefit GM, billionaires with a yen to enter the car business, and auto enthusiasts alike.