GM may drop Pontiac, GMC brands, report says

GM may drop Pontiac, GMC brands, report says
 

Automotive News | April 16, 2009 – 12:01 am EST

 

NEW YORK (Reuters) — Facing a June 1 deadline to restructure under U.S. government oversight, General Motors may drop its Pontiac and GMC brands as part of broader cost-cutting moves, Bloomberg reported, citing people familiar with the matter.

The two brands are being studied as part of talks with an Obama administration task force assessing whether GM can be restructured without bankruptcy, sources told Bloomberg on Wednesday.

GM’s Chevrolet, Cadillac and Buick brands are likely to be safe, the news agency reported.

GM had said earlier it would keep Chevrolet, Cadillac, Buick, GMC and Pontiac while selling or closing Hummer, Saab and Saturn.

An investor group including private equity firm Black Oak Partners has approached GM about buying its Saturn brand assets and dealership network, both sides said on Wednesday.

GM’s Hummer brand has received interest from three bidders, none of them automakers, sources told Reuters on April 8.

The current offers for Hummer range from $100-$200 million, the sources said. GM has taken $13.4 billion of U.S. government loans since the beginning of the year.

A decision is yet to be reached on what would happen to Pontiac or GMC should GM opt not to keep them, Bloomberg reported, citing unidentified sources.

The GMC brand has a better chance of surviving than Pontiac, one of the sources told the agency.

A GM spokesman did not immediately return a call seeking comment on the report.


 

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