Bob Lutz: Government Ordered Pontiac’s Execution

They say hindsight is 20/20, but given how bad off the American auto industry was just four years ago, and how well it’s doing today, we’d say things probably worked out as well as they could have. GM in particular is doing a lot more with a lot less, shedding half of its brands, three of which (Hummer, Saab, and Saturn) were unpopular and unprofitable in 2009. But when it was announced that Pontiac also had to go, muscle car enthusiasts were up in arms, even though the brand hadn’t made a single dollar in a decade.

Things have mostly quieted down since then, though former GM executive Bob Lutz has thrown fuel on the fire with this interview with MotoMan. In the video above, about two hours into the interview, Lutz reveals that the government bailout money came with the stipulation that Pontiac had to go.

The situation being as dire as it was, GM wasn’t exactly in a position to negotiate. In fact, the government had wanted to chop GM down to just two brands; Chevy for volume and Cadillac for luxury. GM made the case that Buick had to stay thanks to its popularity in China, and the high profit-margins warranted keeping GMC around as well.

GM had wanted to hang onto Pontiac as well, with the plan being to consolidate Buick-Pontiac and GMC into a single dealer network. But when GM revealed that its “excitement” brand hadn’t made any money in the new millennium, government handlers said it had to go.

We’ll be the first to admit that losing Pontiac wasn’t easy. However, given how well Chevy seems to be carrying on the performance mantle, we’re willing to look forward to what GM has planned for the future, rather than the mistakes of the past. After all, if GM hadn’t gone bankrupt in the first place, Pontiac would probably still be here.

About the author

Chris Demorro

Christopher DeMorro is a freelance writer and journalist from Connecticut with two passions in life; writing and anything with an engine.
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