“Anyone who has been associated with the Pontiac brand knows that this was a difficult decision. Pontiac has had a rich and storied history, but unfortunately, despite the efforts of all concerned, the brand has been unprofitable over the past several years. We had hoped in our February 17 Viability Plan to convert Pontiac to a niche brand within the Buick-Pontiac-GMC channel.
However, the Viability Plan as submitted was not acceptable. GM was further challenged to take more significant restructuring actions which would allow the company to be viable even in these unprecedented market conditions and in any future cyclical market downturns. These restructuring actions require further sacrifice by all stakeholders: GM employees, suppliers, investors and dealers.
As part of these renewed restructuring efforts, we spent considerable time formulating Pontiac portfolio scenarios that would allow the brand to be sustainable and profitable long term. Unfortunately after careful evaluation, none of these scenarios proved viable.
Therefore, GM is announcing the phase out of the Pontiac brand by year end 2010. This action will allow General Motors to devote its limited capital and other resources to GM’s four core brands: Chevrolet, Cadillac, Buick and GMC.”
Q&A
Q: What happens to my Pontiac vehicle warranty? A: Pontiac vehicle warranty coverage is unchanged.
Q: Where can Pontiac customers get their vehicles serviced, especially if they have been visiting a Pontiac-only dealership? A: Customer service is paramount. Customers can have their vehicles serviced at any Buick-Pontiac-GMC dealership.
Q. Will parts continue to be available for my Pontiac product? A. Yes. Pontiac parts will continue to be available for the foreseeable future.
The measures came after the World Health Organization raised its alert level on swine flu to Phase 5 on Wednesday, based on the flu’s continuing spread in the United States and Mexico. Phase 5, the next-to-highest level in the worldwide warning system W.H.O. alert system, has never been declared since the system was introduced in 2005 in response to the avian influenza crisis. Phase 6 means a pandemic is under way.
Worldwide, at least 13 countries have confirmed cases of swine flu. Switzerland became the fifth European country to report a case of the disease in a 19-year-old student, and the Netherlands soon after became the sixth, reporting a case of the virus in a three year-old who had recently returned from Mexico. In South America, Peru reported its first case, according to news reports.
DETROIT ? Chrysler, the third-largest American auto company, filed for bankruptcy protection Thursday and entered into an alliance with the Italian automaker Fiat.
The bankruptcy case, which government officials envisioned as a swift, “surgical” process, was filed in United States Bankruptcy Court in New York, with the first hearing scheduled for Friday morning. It is the first time a major American car company has tried to restructure under bankruptcy protection since Studebaker in 1933.
“I have every confidence that Chrysler will emerge from this process stronger and more competitive, ” President Obama said during a noontime appearance at the White House.
Fiat last night set out its blueprint to reshape the global car industry, outlining plans to spin off a new company that will include General Motors’ European business and Chrysler.
The Italian car manufacturer meets German ministers today to set out a plan that would bring GM’s Vauxhall, Saab and Opel into a company with Fiat’s core car marques, including Fiat, Alfa Romeo and Ferrari.
The company said last night that the possible new company, which would be floated, would have revenues of ? billion (£71 billion) and an output of between six million and seven millon vehicles a year, which Fiat believes will give it the necessary scale to weather the crisis besetting the automotive industry. The proposed company would be the second largest car group in the world.
In Britain, unions have hinted that a Fiat takeover of Vauxhall would put at risk 5,000 jobs at Luton and in Cheshire. GM employs 300,000 workers worldwide. GM has struggled to find a buyer for its non-core businesses as it seeks to avoid following Chrysler into bankruptcy. But Fiat faces some German opposition over its ownership of Opel, GM’s German subsidiary.
Sergio Marchionne, the chief executive of Fiat, will today meet the Economy Minister and the Foreign Minister of Germany. Karl-Theodor zu Guttenberg, the Economy Minister, warned that the German Government required a long-term strategy.