GM Discontinues Pontiac Brand & is Mum on Hummer

GM announced yesterday it will discontinue production of all Pontiac vehicles and shut down all Pontiac dealerships by 2011 (or sooner). The announcement came as no surprise to anyone as GM cuts back to regain profitability. What did surprise everyone was the lack of any response when questioned about the future of Hummer!

The first Pontiac car made it's debut in 1926, but the Pontiac division's history actually dates back to 1893, when Edward M. Murphy established the Pontiac Buggy Company in Pontiac, Michigan. This company produced horse drawn carriages. It wasn't long before it became clear that motorcar sales were going to out distance the carriages. In 1907 Murphy started the Oakland Motor Car Company as an offshoot of the buggy company.

In 1909 General Motors acquired half of Oakland Motor Car Company. GM's founder William Durant, a friend of Murphy's, was actually more interested in his talent and expertise than his Oakland cars. But before Durant could use these talents, Murphy died. Shortly after this GM purchased full control of Oakland. The Oakland was very successful car through 1920. Then, an economic depression combined with inefficient production weakened Oakland and GM (remind anyone of 2008/2009GM?).

General Motors was in disarray by 1920 and on the verge of financial collapse and Durant who had founded the company 12 years earlier lost control of it again after loosing and regaining control several times before. Newly elected President Warren Harding told Congress that "saving GM meant saving the economy and thousands of American jobs" if they were to see an economic turn around (history repeating itself in 2009?)

The problem was that all the company's seven divisions were fighting for the same customers, and none were trying to gain the Model T Fords customers, which had the largest market share. GM's prices ranged from $795 for the lowest end Chevrolet, to $5,690 for the highest priced Cadillac. Since GM wasn't in the position to go after the Model T, a committee of company executives led by the new GM President Alfred Sloan, decided to create a car to fill a long-standing price gap between Chevrolet and Oldsmobile.

Besides being a gap filler this new car would serve as a platform to share vehicle components.

This would improve volume efficiency. The Pontiac was created in 1926 as a replacement to the Oakland. The Pontiac had the distinction of being the first General Motors car to be designed to fit in a specific market slot. The first Pontiac was the Series 6-27, debuted at the 1926 New York Auto Show. It was built on a 110 inch wheelbase and it featured a Fisher designed body and a six cylinder Lead engine.

Demand soon outpaced capacity and by mid 1926, the division began plans to build a $15 million assembly plant in Pontiac, Michigan. In 1927 Harley Earl created an Art & Color studio, which was an industry's first. Earl first designed the highly successful LaSalle, and he later became head of GM Design. Art & Color and designed all GM models, including Pontiac. Harley Earl was with GM for many years and was responsible for such cars as the Corvette. He stayed with General Motors until his retirement in 1959. Except for the 1965 Mustang, no car in history was in higher demand than the early model Pontiac GTOs. The first GTO in 1964 had a tri-power 389 cid engine, that Hot Rod Magazine touted as the "fastest car to ever come out of Detroit.

If you are considering buying a used Hummer, as of today, Hummer is changing their coverage on Hummer Certified Vehicles. They will still be covered for 6 years and 100,000 miles, but it will be limited coverage and no longer bumper to bumper coverage. If you want that bumper to bumper coverage, better buy your Hummer Certified Vehicle today!