Saab Nears Demise
GM’s deal with Swedish carmaker Koenigsegg has fallen apart. In another downturn for the General (following Saturn and Opel), the other party pulled out of negotiations due to production concerns. Koenigsegg, builder of Scandinavivian supercars, came to the assessment that Saab’s financial state was too dire to manage, sales far too low, and resources for recovery nil. GM management has been under a panic, having had to kill off a third of Saab’s US dealer network already; the Koenigsegg announcement was an unwelcome morning surprise. CarVersation reported months back that there were doubts within Koneigsegg on how to rebuild the brand with only a new 9-5 in the pipeline.
“Pontiac Joins the List of Extinct Brands” by John K. Teahen, Jr.
Going. Going. Gone.
Any day now, a revered 83-year-old brand — Pontiac — will be a relic of the past, and a relic of what General Motors used to be.
Pontiac was introduced in 1926 to fill the price gap between Chevrolet and Oldsmobile, and the brand has had an up-and-down life.
It was a solid performer in its earlier days. But sales were unsatisfactory in the mid-1950s, and I’m sure some GM executives asked, “Do we really need Pontiac?”
After 1956 the answer was a thunderous, “You bet we do!” That year, Bunkie Knudsen, Pete Estes and John DeLorean took over Pontiac — Knudsen as general manager, Estes as chief engineer and DeLorean as assistant chief engineer.
Their first car was the 1959 model, and it was a sensation. It had great styling, a split grille and, most important, “Wide-Track Drive,” a phrase coined by Pontiac’s ad agency, MacManus, John and Adams. Buyers told salesmen, “I want one of those Wide Tracks.”
The Glory Days
Estes and DeLorean succeeded Knudsen in the general manager’s office, and that decade was Pontiac’s golden age. In 1962 the brand was No. 3 in U.S. sales, and it stayed in third place until 1971. Sales peaked at 896,980 in 1978. Before Wide Track, Pontiac usually was in sixth place.
Today, all that is history.
GM, as we knew it, is gone, and so is Pontiac. The new downsized General Motors dumped it, along with Saturn and Hummer. The latter two were relative newcomers; Saturn arrived in 1990 and Hummer came in 2000.
I’m sure there was a hot debate in the GM boardroom when it came time to kill a few brands. Saturn had never been success (it was supposed to be an import fighter, remember?) and the humongous Hummer was a remnant of the SUV craze. Out they go.
But do we keep Buick or do we keep Pontiac? Pontiac partisans surely stressed sales; Pontiac has outsold Buick in 42 of the last 51 years. Pontiac clearly has the edge in styling. It’s GM’s sporty car division, and it has a fleet of small cars.
They kept Buick
Buick backers had history on their side. Buick was the foundation of GM when Billy Durant began putting GM together; Pontiac is a relative newcomer by comparison.
Buick also could call on GM patriarch Alfred Sloan and his theory of brand progression. Sloan felt buyers should step up from a Chevrolet to a Pontiac, to an Oldsmobile, to a Buick and, finally, to a Cadillac as their economic situation improved. Chevy to Pontiac is a mighty small step indeed, but Chevy to Buick is a significant step up the ladder.
But in the end, Buick lived and Pontiac died.
On Oct. 1, Pontiac dealers had 14,200 new cars and trucks on hand. Since then about 6,900 G6 models have been built for fleet sales. October sales totaled 10,646. Thus, about 10,450 remain. All should be sold by the end of this month.
Pontiac then will join Oldsmobile, Plymouth, Studebaker, Packard, Winton, Duesenberg and many other proud brands in the automotive graveyard. Pontiac will have sold an estimated 41 million cars and trucks during its 83-year life.
Column courtesy of Automotive News.
Video: Topgear Hammond Drives 778hp Zonda Cinque
Awesome video from TopGear. Hammond drives the $2million 778hp Zonda Cinque which has a top speed of 220mph. Thanks to our friends at AutomotiveAddicts.com for the video
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Video: 2011 Maserati GranTurismo Convertible
The 2011 Maserati GranTurismo Convertible has an amazing V-8 sound. The GranTurismo Convertible has a 4.7-liter Ferrari V-8 engine rated at 433 horsepower, good for a 0-60 mph time of 5.3 seconds and capable of 176 miles per hour.
CNN Speculates Chinese Will Buy GM
You know the press is having a field day with all the bad Detroit news. CNN has posted a biz article on its front page discussing the possibility that Chinese entrepreneurs will buy GM. Chris Isidore, the author, points to GM’s strong sales place in the country, and the Chinese scouting for new US properties. Chinese businesses have already acquired the British MG and American Hummer properties, and have investments in other prominent Western auto nameplates. The country is also the world’s number one auto market now, having surposed the US in the past year. The article states one estimate for GM’s worth to be about $42,000,000,000. The possibility isn’t outlandish, as the story points out, when you recall China’s effort to buy the Unocal oil firm four years ago.
Video: Audi R8 V10 Vs. Chevy Corvette ZR-1 From Topgear
Here is an interesting comparison from Topgear. They test the V10 Audi R8 Vs. the powerful V8 Corvette ZR-1. I found it interesting that even though they say the ZR-1 is faster and more fun, they say the Audi R8 is a better car. The Audi R8 handles better and is made of better quality. I find it hard to believe when he says his ZR-1 broke down in 4days. Which of the two cars would you choose?
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“The Travails of Smart…” by Peter M. De Lorenzo
Two weeks ago, in an item in our “On the Table” column, I suggested that the Smart adventure was nearing an end, saying the following: “Back when this venture was first announced I went on record as saying it would last 12 months, tops. Well, 20 months in and with sales trending downward month after month - October sales were down a staggering 70.4 percent - I think we can safely say that the Smart experiment is a bust. Even with an electric version allegedly coming here, it doesn’t matter. It’s a niche car, and the niche has been filled. Buh-bye now.”
Tension Rises between Germany and the General
The German state, is now pushing the continent’s governments to avoid providing further loans to General Motors in order to preserve the Opel labor force. Germany’s legislature and cabinet have gained a more capitalist tilt since recent elections. The German federal treasury previously offered state funds to assist GM in the sale of Opel to Magna International, a Canadian supply consortium, and Russia’s Sberbank.
The deal fell through, and GM has decided to keep the Opel firm. The September Bundestag elections saw the rise of a center-right coalition in the German republic. The pro-business factions have expressed hostility to further expenditures on GM, with a largely negative opinion being held against the US company. While there was support for the Opel sale, that has all since vanished and there is little confidence amongst parliamentarians in GM’s or the largely leftist labor force.
The anti-General tilt coincides with a similar one here in the US. As opposition to the President becomes more organized, Detroit has become a target for ostracism from those hostile to the federal bailouts.
Image Gallery: 2011 BMW 5 Series
BMW Press Release:
The New 6th Generation BMW 5 Series Unveiled in Munich
The Perfect Symbiosis of Modern Design and Dynamic Performance.
The world debut of the new BMW 5 Series Sedan marks the epitome of modern design and driving pleasure in the world of premium midsize sedans. Through its athletic and executive looks, driving dynamics typical of BMW, and innovative comfort and safety features, the sixth generation of BMW’s executive express accurately reflects the standards upheld by the world’s most successful manufacturer of premium cars.
Lexus LF-A to be Lease-Only
Lexus is preempting that scourge of auto sales–the speculator–by making its low-volume LF-A exotic available for lease only. Speculation has been a big problem in the sales world since the 1970s, when frequent special editions of vehicles were released to demand. More recently, cars such as the Ferrari Enzo and Alfa-Romeo 8C have been victims, with early buyers scooping them up only to turn around and sell them for 50% over retail. The LF-A’s estimated numbers were to be $375,000 and five hundred units per year; while the lease plan will undercut speculation, Lexus will offer the cars for sale post-lease.
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