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GM Mulling over what to do with Pontiac

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J dot Miller:
M is currently deciding on one of two directions for the Pontiac brand, but likely won’t make a ruling anytime in the near future. “The Pontiac decision is pretty low on the priority list for right now,” Susan Docherty, vice president of Buick-Pontiac-GMC, told Automotive News. “The decision we make for Pontiac is not going to be the savior for GM.”

Although the decision is still a ways off, the possibilities for Pontiac are quite intriguing. GM could reinstate Pontiac as the company’s performance division with a lineup of rear-wheel drive cars. If GM chooses the performance route, the new Pontiac would likely include a new-age Firebird Trans Am, according to Automotive News, as well as vehicles like the current G8.

The other choice is to make Pontiac into GM’s youth division. That version of Pontiac would still have a sporting flair, but would also have a strong emphasis on good fuel economy. Vehicles would sell in the $15,000 to $20,000 with coupe, sedan and wagon body styles available.

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rjstat:
GM has more than Pontiac to worry about the government wants GM to fill bankruptcy buy June to reorganize see what happens when you take the goverments money you have a partners.

J dot Miller:
The news is making it sound like the brand is all but gone!  Dang, that was my favorite Chevrolet brand.   :'(

J dot Miller:
Although much of today’s news regarding General Motors has been focused on brand elimination, layoffs, plant closures and dealer reductions, there is another major component of company’s new “Viability Plan” that has, potentially, even more significant implications. If GM’s plan to reduce its debt is successful, the U.S. government will end up with a 50 percent stake in GM, while the UAW will hold 39 percent of the company.

So far, the U.S. Treasury has lent GM over $15 billion. At least half of that debt will be converted to equity, giving the government a 50 percent stake in GM. Meanwhile, cash obligations to the UAW could also be turned into equity, giving the union’s Voluntary Employee Beneficiary Association (VEBA) a 39 percent slice of the company.

GM is hoping bondholders will accept equity, too. These debtors could end up with a 10 percent share collectively, assuming they’re willing to make the concessions.

Perhaps hardest hit will be current common stockholders, who will be left with just 1 percent of the company if the plan succeeds.



FASTFREDDIE:
PONTIAC IS GOING  :surr: SELLING SATURN NEXT :pilot:

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