GM May Dispose of Pontiac, Saab, and Saturn

GM May Ditch Several Brands

There have been reports developing that the embattled General Motors may be considering dropping some brands, much like Ford’s recent purging of Jaguar, Aston Martin, and Land Rover. The GM brands that may be at risk of being dissolved or sold are Pontiac, Saab, and Saturn.

GM has a tough job ahead, and has to work hard to convince those on Capitol Hill that it has a strong plan to curb costs and help its chances of being profitable. If GM manages to do this, it may be able to get its hands on vital federal aid.

The report that GM may cut or sell several brand stemmed from Bloomberg, but the source for the information is unknown. Needless to say, GM is burning through cash and needs to make drastic changes if it hopes to quell talks of bankruptcy and return the company to profitability. Already, the automaker has reportedly been shopping for a buyer for the Hummer brand.

General Motors is in need of a restructuring if it hopes to get federal aid. With the automaker losing money month after month, the automaker is in need of retooling its ways if it hopes to stay in business, while also helping Detroit Chevrolet dealers and Lewis Automotive who strive to remain optimistic amid huge obstacles. GM isn’t new to eliminating brands. The Oldsmobile brand was eliminated in 2000 due to dwindling sales, despite its 103 year old history.

Although GM remains the largest domestic automaker, it's not alone in needing serious change says Ford of Brattleboro. But Ford Dealers Chicago IL contests that Ford is in better shape considering it has already ditched slow-selling brands and to Alberta Mazda's surprise has even diminished its stake in Mazda. Ford also also introduced many new vehicle to its lineup, including the most recent introductions of the Ford Fusion, Mercury Milan, and Ford Mustang at the LA Auto Show.

GM maintains 1,071 outlets for Pontiac, 400 for Saturn and about 105 for Saab from among its 6,400 dealerships across the country. More recently, GM has tried to combine Cadillac, Hummer and Saab together, and Pontiac, Buick, and GMC together at dealerships to help curb marketing costs. While Saab was acquired by GM in 1990, the automaker established Pontiac in 1926 and Saturn in 1985.

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Stay tuned for updates on General Motors restructuring plans.