GM Said To Study Dropping Pontiac, GMC - Not Surprisingly

GM Said To Study Dropping Pontiac, GMC - Not Surprisingly

DETROIT - General Motors Corp. reportedly is considering dropping its Pontiac and GMC brands as part of its massive cost-cutting efforts, unnamed sources told Bloomberg News .

That comes as no surprise. GM already has said it was paring Pontiac back to a niche brand. GMC long has been questionable since every one of its models is sold under a different GM nameplate, most notably the much larger Chevrolet truck.

Sources told Bloomberg that Chevrolet, Cadillac and Buick are likely safe from cuts, but GMC and Pontiac are being studied for elimination. Already GM has said Saturn will be phased out by 2011 unless the brand is purchased, and GM supposedly has multiple parties interested in acquiring Saturn. Hummer is gone or sold soon. Saab leaves the GM family by year-end.

GM executives have said for some time that it will focus on the global Chevrolet and Cadillac brands. Last week, new GM CEO Fritz Henderson said in interviews that GM wouldn't think of ditching Buick, which sells more vehicles in China than the U.S.

GMC has a better chance of surviving than Pontiac, once the performance car division of GM, sources told Bloomberg, who added that decisions have yet to be made on what would happen to Pontiac and GMC if GM decides not to keep them.

Elimination of brands also speeds up GM's plans to cut its dealer ranks from today's 6,200 to 4,100.

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.