GM Dealers Feel The Pinch

Auto Giant Makes Emergency Move To Shrink Pontiac To A Niche Brand

(CBS)  Russ Shelton loves his job. Selling cars, he says, is his passion.

"There's never any more fun than selling a car. We've enjoyed a good 50 years."

He is the president and CEO of Shelton Pontiac-Buick-GMC in Rochester Hills, Mich., a dealership his father started in 1958. Soon though, it could become Shelton Buick-GMC.

In the restructuring plan GM submitted to Congress earlier this week, the company announced that it would be downsizing the Pontiac label in order to cut costs. GM will turn it into a "specialty brand with reduced product offerings," according to their report.

Shelton explains that Pontiac will likely become, "a model within a model like Corvette is to Chevrolet."

Pontiac sales account for about 50 percent of his business and losing or downsizing the brand would be devastating. "As we always say, if you don't sell, you don't eat.

"Being in business 50 years, I think we've pretty much been through everything. But this is totally different than anything I can remember," he said.

Just 10 miles down the road from Shelton's dealership, the Orion GM assembly plant produces hundreds of Pontiac G6's daily - Shelton's best-selling car.

A reduction in the brand spells job cuts at the plant. "[Pontiacs are] 40 percent of our build," says Sherri Ferrier, an assembly line employee at the factory. "So if that shuts a shift down, there's more job loss." The plant operates three shifts, 24 hours a day. The Pontiac G6 accounts for about half of the plant's production.

Says Steve Thomson, a quality network representative at the GM plant, "Before the crunch, we couldn't build G6s fast enough. There was only a three-day supply out there."

How times have changed.

[slim1h2o]

Shelton explains that Pontiac will likely become, "a model within a model like Corvette is to Chevrolet."

What a shame. They should discontinue the Chevy name.
When you speak of Pontiac, you were talking Trans-Am, Firebird, The Judge, etc, etc. All successful models.

When you talk of Chevy, you''re talking Chevette, Corvair, and a host of others,,all duds.

Of Course Chevy did have some other models that were Ok, But that''s the point, all were just ok.

The lone exception being the Corvette, which was priced out of reach for most people.

[slim1h2o]

Shelton explains that Pontiac will likely become, "a model within a model like Corvette is to Chevrolet."

What a shame. They should discontinue the Chevy name.
When you speak of Pontiac, you were talking Trans-Am, Firebird, The Judge, etc, etc. All successful models.

When you talk of Chevy, you''re talking Chevette, Corvair, and a host of others,,all duds.

Of Course Chevy did have some other models that were Ok, But that''s the point, all were just ok.

The lone exception being the Corvette, which was priced out of reach for most people.

[slim1h2o]

Actually, they should have kept the Oldsmobile and Pontiac and dropped the GMC line. They are all Chevies with a different grille and nameplate.

Posted by thgdriver1 at 01:13 PM : Dec 05, 2008

Ooops, yup you''re right, I did forget the Camaro, which was highly successful. Probably one of the most successful by Chevy.

Yup too, on the rest of your post. Meaning, I do agree. The only problem with the Olds name is, that most people remember as the brand your Grandfather would buy. Well that''s what the powers that be at GM said anyways. They said it was hard to sell cars under that name.

But then again, what do they know about running a car company?

LOL

[slim1h2o]

Actually, they should have kept the Oldsmobile and Pontiac and dropped the GMC line. They are all Chevies with a different grille and nameplate.

Posted by thgdriver1 at 01:13 PM : Dec 05, 2008

Ooops, yup you''re right, I did forget the Camaro, which was highly successful. Probably one of the most successful by Chevy.

Yup too, on the rest of your post. Meaning, I do agree. The only problem with the Olds name is, that most people remember as the brand your Grandfather would buy. Well that''s what the powers that be at GM said anyways. They said it was hard to sell cars under that name.

But then again, what do they know about running a car company?

LOL

[slim1h2o]

I don''t knoqw why this thing keeps double posting. I only hit the publish button once. This time, it was a delayed reaction, I posted, it came up only one time, then a couple seconds later, another pops up.

***..

[slim1h2o]

Posted by thgdriver1 at 01:26 PM : Dec 05, 2008

They did that just to save money, but all that did was water down the brand, and we ended up with a bunch of look-a-likes.

And most were junk too, as far as I''m concerned.

[drputt45]

Well, the Judge was a beast, to say the least. The new GTO was no Judge. Can''t wait to see the new Camaro, had a 78 Rally Sport for years until a drunk driver took it out one night. Walked away from that one.

Americans used to buy American cars. But, times have changed. I still do. Just traded a Suburban with about 200k for a Dodge pick up (all I ever put on the Chevy was a fuel pump and tires). My Dodge is better looking and gets better mileage than the Toyota and Nissan trucks.

I just hate to see the profits going to Toyko.

[slim1h2o]

BTW, not sure if you know----442 stood for 4 barrel carb, 4 on the floor, duel exhaust.

Posted by thgdriver1 at 01:38 PM : Dec 05, 2008

Actually I did, but had forgotten that though. That was another car I had not thought of in years. That was a hot car in it''s day.
If I remember right, they had to discontinue it, because of the insurance industry had complaints about it.
Another reason to hate that industry, sticking their nose into others business where it doesn''t belong. And people say we are not fascist.

[usclimey]

BTW, not sure if you know----442 stood for 4 barrel carb, 4 on the floor, duel exhaust.

Posted by thgdriver1

Seem to remember that had a 464 cu. in. engine? Always wondered why they called it a 442 not a 464. Even growing up in the UK I thought that was one of the handsomest American cars. Wonder how much one in good Nick would run these days? Of course, they must only get a couple of hundred yards to the gallon!!

[gregsylmar]

Suggestions for Big 3 to boost sales and increase buyer confidence.

Offer a real 100% gaurantee, when you take car to dealer with a problem you instantly get a loaner vehicle of equal or greater value...
Save the buyer valuable down time so he can get right back to work.

They obviously have a surplus of vehicles to use in this offer, the loan cars could later be sold at a hugh discount... with the same 100% guarantee!

Greg

[ocasanas]

Here is an idea: reduce Pontiack Buick GMC to nothing. Reduding a brand doesn''t solve any problems. Switch to the Yugo brand as in there yu go ...

[liberate40]

Sell Pontiac to the Chinese or to the Indians. They are flush with cash from all the junk goods we buy from them. We Americans are broke and living on debt that our great-grandchildren will have to repay.

[ludvig1-2009]

My wife has a 1996 Pontiac Bonneville and loves it. I drive a 1997 Chevy S-10. The vehicles are 12 and 13 years old and run well, but I''d buy a replacement tomorrow except I live in California and no matter where I buy the car according to California my sales tax goes to the town I live in, and the town just voted in a Cop tax to put more idiots on the street who think it''s necessary to take my picture when I ride a bike down the street, put a decoy car in my path when I take a walk, spy on me when I walk laps around the park (moving and hiding elsewhere when I walk in their direction), and when they can''t find anything to charge me with dropping a bag labelled medical perfectly centered on my driveway 5 ft. out in the street and then making the mistake of parking a block upwind where the stench from the pig sty emanating from the vehicle wafts toward the package giving away their location. Retired Nuclear Engineer and 13 gallon blood donor.

[ramos937]

I live in a small city in South Texas. We have a main drag that has almost all of the city''s dealers. I was curious today as to how many new car dealers there was along this strip (I am retired) so I took an unscientific census. There are about 20 to 25 dealers. All sell a mixture of domestic brands and "foreign" brands ("foreign" is not really appropriate since these cars come from San Antonio, TN, WV, etc.). For example, in the same block, I saw Champion Chevrolet, Champion Toyota, Champion Honda, Champion GMC. This means that if this dealer is selling less domestic brands, the foreign brands pick up the slack.

Those dealers that did not see this coming just simply were not paying attention. It is a fundamental law of business that you have to think ahead. If you do not, then you do not survive.

[wl7bzh]

love the trick where you''re at the car dealers office signing the paper work and do the favor of taking the car off the lot to "wash it for you"-Little suggestion-compare the odometer reading of the car you agreed to buy with the one brought back from the "courtesy car wash"

[bud28dy]

My wife has a 1996 Pontiac Bonneville and loves it. I drive a 1997 Chevy S-10. The vehicles are 12 and 13 years old and run well, but I''''d buy a replacement tomorrow except I live in California and no matter where I buy the car according to California my sales tax goes to the town I live in, and the town just voted in a Cop tax to put more idiots on the street who think it''''s necessary to take my picture when I ride a bike down the street, put a decoy car in my path when I take a walk, spy on me when I walk laps around the park (moving and hiding elsewhere when I walk in their direction), and when they can''''t find anything to charge me with dropping a bag labelled medical perfectly centered on my driveway 5 ft. out in the street and then making the mistake of parking a block upwind where the stench from the pig sty emanating from the vehicle wafts toward the package giving away their location. Retired Nuclear Engineer and 13 gallon blood donor.

Posted by ludvig1
----------------------------------------
Dude the only vehicle you should be in isn''t an Oldsmobile but a padded ambulance going to the nearest mental hospital. Seriously.

[ksjeff-2009]

I would estimate that 70 - 80% of Americans are fu**ing morons based on the comments I read here today.

[lmartink]

Morons or not, now is not the time to buy a car. Taking on payments, and in incresed debt load, is the worst thing a consumer could do right now. Even if the car is 50% off, it could be very risky deal.

[ramos937]

A suggestion only....If you do have to buy a recent car, consider the car rental companies. The last two cars I have bought came from Enterprise Rent A Car and I have been very happy with both. Warranties are still in effect. Plus, the price is roughly 1/3 off.

[whatchange-2009]

Just traded a Suburban with about 200k for a Dodge pick up (all I ever put on the Chevy was a fuel pump and tires).Posted by drputt45 at 01:35 PM : Dec 05, 2008 ************************ You dump a vehicle that gave you that kind of service for another brand because it was prettier? I''ve got some ocean front property in Arizona I want to sell you as well. I own 4 Suburban(K2500''s)and they all work like that. I''ll give them up when they bury me. At what price are you willing to sell your personal safety to Toyota or Honda? We''re not even going to talk about American jobs lost.---------Signed: Horse Rancher in Florida

[hello_fr_pi]

before we the people bail them out let''s see them make some sacrifices to keep afloat or won''t the unions accept that? maybe they could get a loan from the UAW? work without health care, i''ve done it. let the employees sacrifice to save the companies and the ceo type tap their personal resources. i grew up in MI and have always wondered why the "leaders" in the industry would ignore the future technologies. it was only a matter of time.