New York International Auto Show

GM hopes 3 new models will boost Pontiac

David Shepardson / Detroit News Washington Bureau

NEW YORK — General Motors Corp.’s vice chairman said the automaker was committed to fixing its Pontiac brand, showing off three new models here at the New York International Auto Show.

"We used to say, ‘We build excitement’ and we’d show you a four-cylinder Grand AM," Lutz said, noting the brand just a few years ago had no rear-wheel drive vehicles, one V-8 and the infamous Pontiac Aztec. "Pontiac arguably simply did not have the goods. But things have changed. Pontiac now stands for seductive performance."

Because GM sharply reduced its fleet sales, Pontiac’s overall sales declined to 360,000 in 2007 from 410,000 in 2006. But its retail sales increased slightly.

"This is the best lineup that Pontiac has had in probably the last 50 years," Lutz said.

Lutz said the brand renaissance began with the GTO in 2004 and then the Pontiac Solstice in 2005.

On Wednesday, Lutz showed off a new 2009 hard-top Pontiac Solstice coupe and two Australian-made vehicles, the G8 GXP and 2010 G8 Sport Truck. Pontiac is holding a contest to name the Sport Truck permanently. It is a throw-back to the Chevy El Camino.

Lutz noted that the Australian factory that builds the two vehicles can only produce 200,000 vehicles for worldwide sales, meaning GM will sell only a chunk of those in the United States.

To separate the brand, Lutz said, Pontiac will be "the non-fleet-oriented, more performance-enthusiast brand within General Motors."

GM wants to better differentiate its brands, which include Chevrolet and Buick, rather than selling near-identical versions of the same vehicle under different name plates, Lutz said.

"We’re growingly successful in undoing the mess that we created in the 1980s when every brand had everything and they were all priced the same," Lutz said, adding that there was a legitimate question then of whether there were too many brands.

David Healy, an auto analyst at Burnham Securities said the idea of positioning Pontiac as a sporty brand can work. "But the future may not be in rear-wheel drive vehicles, but in more fuel-efficient, front-wheel drive," he said.

Chevy Sport Truck nixed

Lutz said GM considered making the half-truck/half-sedan Sport Truck a Chevrolet, but Chevy has a large number of new products, including the new Malibu. He said a Sport Truck won’t be built for Chevy or Buick.

"Pontiac only," he said.

Chevy is in line to get the Volt in late 2010, the vehicle that the company says will go 40 miles or more on battery power alone.

Lutz said GM isn’t revising its industry-wide sales forecast for 2008, despite high oil prices, tightening credit markets and ongoing economic turmoil. He said the company expects sales will rise in the second half of the year and will finish near last year’s 16.1 million.

GM’s sales of passenger cars and crossovers are doing well, but larger vehicles are suffering.

"The trucks are under pressure, especially the large V-8 trucks," Lutz said, adding that the company would be ready if sales dramatically declined. "We will react to changing conditions."