REPORT: Holden to lose $1 billion annually if GM shutters Pontiac

[jamz]

Filed under: Sedans/Saloons, GM, Pontiac

2009 Pontiac G8 GXP: Click above to view the gallery

The G8 may be the best Pontiac in decades, but the stellar RWD sedan doesn't stand a chance if the arrow head is forever retired. The loss of the G8 is difficult for enthusiasts, but it'll be even tougher for Holden. GM's Australian arm will lose $1 billion ($716 million US) in revenue every year with the loss of the Commodore clone. Holden has been counting on 30,000 annual exports to the US and 70,000 worldwide exports. GM spent $77 million to upgrade the Port Elizabeth plant to build left-hand drive vehicles, and the plant received $6.9 million in loans from the Australian government to make the project happen

Even though the G8 has generally been considered an excellent vehicle by the press and enthusiasts alike, it hasn't sold well in the US. About half of the 25,000 G8s shipped Stateside have yet to leave the dealer lot. The collapse of auto sales in the US have a lot to do with that, but we'd add that marketing efforts of the G8 have been less than stellar as well. It's hard to buy a G8 when you don't know it exists. March was a bright spot for the G8, though, as nearly 3,000 models were sold; the vehicle's best month ever.

One possibility for the G8 that could save Holden a lot of money while saving an excellent RWD sedan from extinction would be to convert it into a Chevy. The Commodore already dons the Chevy bow-tie in some markets, and we're sure US dealers would welcome a RWD sedan into its showrooms.

[Source: News AU]REPORT: Holden to lose $1 billion annually if GM shutters Pontiac originally appeared on Autoblog on Mon, 27 Apr 2009 07:58:00 EST. Please see our terms for use of feeds.


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