Why GM Killed The Pontiac Brand? The Death of the American Muscle Car!

When you hear the name "General Motors" do you think about the Pontiac? How about when you hear the name "American Motors"? Do you think of Jeep or Hummer, or Mustang? These classic car brands were formidable in their day and owned a significant portion of the market, but unfortunately, some of these brands no longer exist today.

Pontiac was an American automobile brand owned by General Motors, and it was named after the famous Ottawa chief; the brand was popular from the 60s to the 80s. They were particularly known for their performance cars, specifically the GTO, Firebird, and Trans Am. Pontiac's demise was much lamented, but the reality was the brand was in a bad place at the time, and General Motors itself was suffering bankruptcy in 2009. General Motors killed Pontiac in order to save money, reduce competition, and make room for other brands.

Many fans felt that General Motors was wrong to kill off the Pontiac brand. Many believed that Buick should have been discontinued instead. Fans remain angry today that Pontiac no longer exists, despite rumors of a revival. However, there are some sound reasons why GM chose to eliminate the Pontiac nameplate. Even though many contend that its demise was unfair, Amazingly, it's been over ten years since Pontiac was discontinued, but it feels like yesterday for many enthusiasts. Although Pontiac was in financial trouble when it ceased production in 2009, killing the brand may have been the kindest thing GM could have done for itself at the time — "GM Killed Pontiac was a business move that helped the company stay afloat."

In this article, we will explain why General Motors decided to discontinue the Pontiac brand:

1. The Final Years Of Pontiac Were Marred By Poor Sales And Bad Press

Pontiac was once a proud brand in the General Motors family. GM acquired it in 1931, and it soon became the sister brand to Chevrolet. For many years, it sold high-performance vehicles and was also seen as GM's performance division. Unfortunately, by the late 2000s, it had become a shadow of its former self, failing to keep up with the times.

In the final years of its existence, the Pontiac brand had become increasingly unprofitable. In 2009, General Motors declared bankruptcy and began to consider its future. The biggest carmaker in the United States was struggling, and President Obama had called for sacrifices that needed to be made for a leaner GM. Unfortunately, Pontiac was right in the line of fire when it came to GM making some tough decisions about its brands.

2. Poor Sales Doomed Pontiac To Failure

Pontiac had become unprofitable by the end of its life as an independent brand, but this wasn't helped by the fact that it was also selling rebadged Chevrolet vehicles. These were being sold at a lower price than what Chevrolet was actually selling those same vehicles for. This meant that Pontiac was earning itself a loss while undercutting the main GM brand. However, this wasn't its only problem - selling these vehicles at such a low price meant that Buick was also suffering financially because it meant that it, too, was making losses with its own range of rebadged Chevrolets. So why did Buick not suffer the same fate as Pontiac?

The truth is that Buick was never going to get the axe at General Motors. GM said Buick made a billion dollars a year, and Pontiac lost the same amount. But the other key factor was how big Buick was in China--it was huge! Still taking on Volkswagen, Toyota, and other brands in China, Buick sells more products there than it does at home. So killing Buick off was never an option for GM, so it had to be Pontiac.

3. Inferior Build Quality & Rebadged Chevrolets

The brand's demise was much lamented, not just in America but around the world. The GTO and Firebird had become legendary cars, and the company was producing vehicles that could rival those from Ford. But things went downhill rapidly when rebadged Chevrolets were introduced, and inferior build quality meant poor resale values. As a result, Pontiac quickly went from being one of America's best car companies to one of its biggest jokes.

4. As The 21st Century Began, It Became Clear That Pontiac Was No Longer A Viable Brand

The Pontiac brand was ultimately doomed as the 21st Century dawned. It was also competing within the same overall brand for cars within the same segment. Why should GM have four or five divisions, all selling practically the same cars? President Obama's comments couldn't have rung truer: "No one bought Pontiacs anymore--not even those who claimed to love them so much." When GM itself was in financial difficulties in 2009, many should have seen the end of Pontiac coming.

The Bottom Line

If you love American muscle cars, Pontiac is the brand for you. The defunct company has some fondly remembered vehicles, Such as a 1969 GTO Judge, 1978 Trans Am, 1962 Catalina 421, and 2005 Grand Prix GXP.

Pontiac is no longer around, but the memories remain. Muscle cars are more popular than ever, thanks to films like Fast & Furious and the Niche market of people who still drive great cars from times gone by. Pontiac isn't a household name anymore, but it does have a story to tell, one that's worth sharing with people who are interested in good old-fashioned stock cars.

Many car enthusiasts still miss it in 2023--especially those who grew up with them! But in the era of electric vehicles, it really never stood a chance. Rest in peace, Pontiac.