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Pontiac

In: Social Issues

Submitted By elienasr1993
Words 489
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Why Did Pontiac Get Bankrupt?

According to Flammang (1999), “ Pontiac was an automobile brand established in 1926 as a companion make for General Motors’’. General Motors made the first Pontiac car in 1926 with a V6 engine. (Ron,1999). Pontiac started to make models from 1926 till 2010, and then it got bankrupt for many reasons, but the main ones are : product overlap, and profit margins. First of all, Pontiac had too much overlap with Chevrolet. Pontiac cars were great
Cars, but there were few of them that supported General Motors to get Pontiac out of business. There was no need for a G6 GTP when you have the Malibu LTZ. For example, people in the hole world are not supposed to buy a 2006-2009 Pontiac G6 GTP which is available in limited countries when the Malibu LTZ is available in worldwide.(Asker,2010). In addition, Pontiac were the prettiest cars made by General Motors. However, few of them were bringing excitement. (Ron,1999). Not all Pontiac cars were sold to bring excitement. For instance, a Pontiac Grand Am will stand out in a crowded parking lot, but a
Bonneville will not stand out in a parking lot. Second, Pontiac got bankrupt because of low profit margins. According to Asker
(2010), “ Pontiac is not a premium brand”. Some of people have said that General
Motors should keep Pontiac instead of Buick. But, the sales of Pontiac is much lower than the sales of Buick . Moreover, from 2005 till 2010, Pontiac had stopped making a four cylinder car except the G3 and the G5. Those past years caused too much low profit margins , because people are buying cars with low

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