Pontiac Put Out To Pasture

Looks like GM will announce the elimination of the Pontiac brand on Monday. That means no more Smokey and the Bandit movies.

We all know the reason – GM simply needs to reduce the number of brands produced to reduce expenses and make a last ditch effort to profitability. Saturn, Saab and Hummer could be next in line to be sold/eliminated. Last brands standing: Chevrolet, Cadillac, Buick and GMC.

What does this mean to current Pontiac owners – and those who happen to be test driving used Pontiac cars today? One school of thought is that collectors may make a run on classic and antique years. This may cause a price spike in some older models as demand increases. Another thought is a possible price drop in late model used Pontiacs due to a drop in demand as consumer walk away from the brand.

Consumer confidence could drop thinking Pontiac won’t be able to service and support their vehicles. This shouldn’t be an issue as GM has a healthy inventory of vehicle parts; the worldwide network of parts and suppliers is another channel that can provide a steady stream of products and keep Pontiacs on the road for quite some time.  (IE: The Pontiac G8 is built on the same platform and assembly line as the Holden Commodore in Australia.)

GM hasn’t ruled out reviving the Pontiac brand and bringing it back once they turn things around at the company. One can only hope for both to happen…