The Pontiac G8 has proven to be a unique entry to GM's U.S. lineup that was developed with minimal investmentEnlarge Photo
Despite previous assurances made earlier this month
by its CEO Rick Wagoner, General Motors is reportedly considering dropping the Saab, Saturn and Pontiac brands in order to improve its chances of garnering a federal government aid package.
GM is currently readying a turnaround plan to present to Congress on the 5th of December
, and according to Bloomberg
this proposal will hold the answer as to whether or not the carmaker will end up either dropping or selling the Saab, Pontiac and Saturn brands. The information comes from "people familiar with the matter", who wished to remain unidentified as no real decision had been made yet.
While the viability proposal is scheduled to be presented to Congress on December 5th, GM's higher-ups will review the plans on November 30th and December 1st, and a 10 to 12 page document for the public will be made available before the December 5th deadline, followed by a much more detailed 80-page document for Congress to review.
Currently, GM has a number of dealerships that sell Pontiac, Buick and GMC brands all in one location. Dropping Pontiac would adversely affect these dealers, which may be why GM's CEO has been making assurances that the company will not be dropping any more brands.
However, dumping the brands will help GM reduce costs drastically as it struggles to stay afloat. Whether or not its plans have changed in order to woo the federal government into providing loans, the move would make economic sense for GM, which currently has many overlapping models and high associated costs with these struggling brands. More news on this should be available closer to the 5th of December meeting in Washington.