Pontiac move won’t affect Holden
April 29, 2009 by David Twomey
GM Holden will lose one of its biggest export models following the move by United States parent company General Motors to dump the Pontiac brand, but says the move won’t affect jobs locally.
Holden produces the Pontiac G8, a version of the Commodore, for the US market.
However, in an announcement yesterday GM said it would phase out Pontiac by the end of 2010 to focus on four core brands in the US – Chevrolet, Cadillac, Buick and GMC.
It will also accelerate the shutdown of some American car assembly operations and cut extra jobs in the US.
Holden spokesman Scott Whiffin has told CarAdvice there would not be any impact on jobs in Australia.
“G8’s are assembled at our plant at Elizabeth SA where we have been modifying our production volumes and we will continue to do so, Mr Whiffin said.
“Notwithstanding the fact that this has only just been announced, we don’t envisage there will be any job losses at Elizabeth as a result of this decision.”
“We’ve just been made aware that GM intends to eliminate its Pontiac brand from the end of 2010 and continue with the four core brands of Cadillac, Chevrolet, Buick and GMC.
“GM is having to make some tough decisions as part of its viability planning in the wake of the Global Economic Crisis and this is unquestionably one of those tough decisions.
“There are direct implications for Holden in this and specifically our Pontiac G8 export program.
“We will work with Pontiac to manage the phase-out of the G8 through to the end of next year. The announcement has only just occurred so we don’t know what their expectations might be, as the car is currently selling really well.
“It is true to say were disappointed the G8 program is coming to an end – it is a great car that has been exceptionally well received and reviewed in the US.
“It’s worth noting that we shipped more than 36,500 G8’s to North America in 2008. Our focus now is on finding new markets for what is a world-class vehicle in addition to continuing to export cars to Asia, Africa, Europe and the Middle East.
Holden has already announced a decision to cut its afternoon shift from early next month with plans to run two teams on a single day shift, each working one week on and one week off.
The move will cut wages for local workers but retain the 3000 jobs at the Elizabeth manufacturing facility in Adelaide.
The company said it would also push ahead with plans to build a new small car in Adelaide from 2010.
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GM has also said that if it does plan on keeping Pontiac it would make it a Niche brand, only offering cars like the Pontiac G8, and Pontiac Solstice.
Also when or if Pontiac is phased out, the VE export program to the US will mean a profit loss of $1 Billion annually to Holden.
Car Enthusiast, suggest you read our earlier story “Leaner GM dumps Pontiac” as Pontiac is dead from 2010
If Holden will effectively lose over 30,000 sales annually of the Commodore (roughly half the amount of what they sell here?) how can they expect they won’t suffer any job losses? I know Pontiac won’t be burried until the end of 2010 but I’m guessing they’ve got enough G8’s piled up to last until then. When does this Cruze come on line at Elizabeth?
The other interesting spin on this is that in other articles GM has stated G8 finishes this year!!! not 2010!
It will effect production and jobs. Futuris is now working hard to find another market for its PET carpet, what will happen to Venture and Acme etc that have just lost an aditional 30,000 sets from their contract?? As for them continuing to export till next year, why would they when they are talking of running discounts for the phase out? If the car was as succesful as they make out surely the savy sepo would snap them up?
Well I must say this story I found is rather interesting and could be great news for Holden.
“Naturally, the death of the Pontiac brand has put a crimp in sales plans at Holden, General Motors’ Australian arm that assembles and exports the Pontiac G8, essentially a lightly reworked version of the brand’s own Commodore sedan. Interestingly, according to Aussie website GoAuto, a most unlikely new player may be preparing to make up for the sales short: a consortium led by the Los Angeles Police Department.
Currently, Ford sells about 60,000 Crown Vics each year for fleet use, with the majority of those going to various police units around the United States, but production of the Jurassic rear-drive Ford isn’t likely to continue past next year, and it is thought that Dodge’s Charger probably won’t pick up all of the slack, so alternatives will be needed. With that in mind, Port Melbourne-based National Safety Agency has created a new prototype patrol vehicle based on the Pontiac G8 that could be rebadged as a Chevrolet and sold to law enforcement units in the United States and abroad.
There’s even chatter that the new model could be made available for retail sale at Chevrolet dealerships. Not surprisingly, Holden has expressed interest in the project, though it’s taking a measure approach given the current state of the American automobile industry. If this vehicle does come to fruition, it will be interesting to see how it competes against the Carbon Motors E7, another new vehicle specifically designed for police use.”"
Got to be a better choice than the Ford Victoria,even those not loyal to Holden would have to say that !
Sorry BM but Vicky is a definate favorite as a cruiser for the enforcement officers in the states. The amussing thing is this is done by a small company not even related to Holden and Holden are pretty much saying it’s pie in the sky stuff
{{{Not surprisingly, Holden has expressed interest in the project, though it’s taking a measure approach given the current state of the American automobile industry}}}}
I would welcome this car to the US as a new Impala. The current Impala is a joke to the name. In the 50s and 60s the Impala was the top of the line car for Chevy. Well I guess it still is for Chevy but it’s FWD, atleast you can get it in a V8 now but i figure the torque steer is pretty bad.
frontman,
you watch the odd t.v. show don’t you.how about shooter.i don’t think that ANY red blooded american cop would be caught dead in a queen vic if they could get a g8 instead.the the show would always end in the cops getting their man(lol)…
What a load of crap!!!! Talk about Holden spin !! It has already affected Holden a great deal because they have HALVED Commode production already !! Do they think we are stupid?
As for the Crown victoria replacement i doubt whether Holden will even get close to supplying cars to the US police because you could imagine the fallout of using an imported model when GM is in such a bad way and only surviving on taxpayers money and sacrificing US jobs even more ………wont happen, they will want a US built car for this.
The death on pontiac means the end of the american muscle car era.
The reason it means no job losses is because they have already effectively halved their workforce by going one week on / one week off. Why? Because they can’t afford redundancy packages…
Dodge Charger, Chevy Impala and Crown Vic are all assembled in Canada so technically they are not “locally” manufactured. However, the Americans did reject the Australian Bushmaster for their military, I believe on grounds that they want something local that would support American jobs.
Supporting American jobs! Ha….. thats why the largest company in the US is Wal-Mart also known as China Inc.
Car Enthusiast,
Will holden really lose out on 1 billion profit???
perhaps you should re-read what you just quoted.
If they turned 1 billion a year from a lousy 30,000 vehicles they wouldnt be in this mess in the first place.
they may actually lose 1 billion in turnover though which is an entirely different story.
Too many people around here lately that dont understand numbers.
As far as Holdens pocket is concerned, this prob wont affect them in the slightest, but as far as trying to keep their workers busy……perhaps a different story, but as already commented on, they started scaling back production a while ago anyway
The Commodore G8 has flopped in the US selling barely half of what was expected and shipped.
Yet Holden says “..it is a great car that has been exceptionally well received..”
and
“..It’s worth noting that we shipped more than 36,500 G8’s to North America in 2008.”
Most of those cars shipped to the US have been stockpiled.
Yet more lies and deceptions from the Korean car company Holden.
Agreed Millatime. I would not beleive anything coming out of Holden’s PR mouthpiece at the moment.
I agree Jason The American: it makes a lot of sense for GM to re-badge the VE Commodore as a new Impala – which is what they should have done in the first place..mainly because it uses a Chevy engine.
then there’s the possibility of the VE ute being sold as an El Camino Sports Truck.
However; I don’t understand is why GM are keeping GMC given that having multiple plants [operating at less than 70%] producing similar cars is one of the reasons GM are in the sh!t
Millatime – “Yet Holden says “..it is a great car that has been exceptionally well received..” “.
Thats was an obvious statement for Holden to make, they are hardly likely to say any different really. The Problem for Holden and GM is folk do not have any confidence in their products hence the Japanese stuff selling well.
David Twomey, I have already read that article, but i also use other sources of information outside Caradvice.com.au, their are plenty of sites out their covering stories that Caradvice isn’t, and their are also other sites covering articles way before Caradvice publishes them.
David Twomey, you do understand english right, you understand that IF is a possibility.
Also where in the “Leaner GM dumps Pontiac” article does it mention the $1 Billion loss to Holden annually.
Bavarian Missile (.)(.), lol u beat me to it, i was gona also post that article too.
Although with the loss of the Pontiac G8, it shouldn’t be hard for a person living in america to get hold of a VE, all they have to do is import a Chevrolet Lumina (LTZ, S, or SS) or if they want they can get a Caprice. Or they can get a Chevrolet Omega (VE commodore) from brazil.
Which are both left hand drive. Or if Holden is still keen on selling the VE in the US, then it can sell them as Chevrolet Lumina’s just like in the Middle east and South africa.
BM your absolutely right the LAPD have shown great interest in the G8 badged as a chevvy. I recntly just bought a Top Gear mag and there was a story in there about how they are really considering it as there fleet is over 15 years old on average. Wouldnt that be good news for Holden. Go Holden !!!
Wheelnut, one of the reasons GM is keeping GMC is because they are sold through the same sales channel as Buick and Pontiac (there are only 38 independent Pontiac dealers in the whole US, the rest also sell GMC and Buick). If they dump GMC and Pontiac that leaves several thousand dealers with only Buick models (passenger cars/crossovers) and no trucks. Not enough model diversity to be viable. They are also less likely to face lawsuits under their franchise agreements with the remaining dealers. GMC is currently profitable for its dealers, and the Buick brand in China is one of GMs few money makers, so it makes sense to retain them despite the obvious duplication.
Go figure, GM dumps the Pontiac G8 just as it starts selling up a storm in the US…
I just hope this Chevy cop car deal gets approved, it will be great for local Aussie jobs
Well the Impala here in North America is due for an update in 2010 or 2011 and the current car is built in the same plant in Canada as the Camaro is being built in so it shouldn’t be hard for GM to make the switch. Before Pontiac went down hill it was in the plans to move the G8 to production in Canada alongside a new RWD Impala. Also i hear that we may still get a Ute here badged as a GMC.
I agree with jason the american, a FWD Chevrolet Impala is a joke. They could export the Commodore or Statesman to the US as a Impala since they do look kind of similar to each other. But how well would they sell? I remember all the media propaganda about 2 years ago about the Aussie Holden to the US but I’ve traveled around California last year and there were hardly any Pontiac G8s on the roads. I did see a few in dealership showrooms but I only recall seeing about two on the road.
Shak, do you really believe the figure you quoted?? About the average Cop car in the states being 15 years old??? Wow that’s amazing!! Anywonder Ford has held onto the the Vicky for that long purely as a police, government and rental vehicle only!! As for the VE copper, in a word “Pipedream”. Sorry to burst any bubbles but be honest with yourselves hey!
s for the VE copper, in a word “Pipedream”. Sorry to burst any bubbles but be honest with yourselves hey! – Frontman
Spot on, denial, it ain’t just a river in Egypt :)
After GM falls over, the Unions are going to be major stakeholders in whats left, cars being built in OZ, destined for the US market, I don’t think so :(
Gearboxdawg
“End of Pontiac means the end of the American Muscle era”
Hello are some kind of “DEAMER” or something,
Chevrolet[FOR WHAT IT'S WHORTH] is G.M Performance Brand.
The muscle car era hasn’t changed and is represented by:
Chrysler/Ford/Chev.
Pontiac itself has only ever been a “Chevy Clone”
i.e: Pontiac Trans Am is just a Chev Camaro with a PONTIAC
badge on it.
The people and the hard working tax payers of America have shown they DONT want PONTIAC in any form and dreamers like you who think Pontiac was some kind of muscle car.?
HOLDEN you are also DREAMING if you think the dermise of PONTIAC wont have any effect.
Why don’t they rebadge the Commodore as a Chevrolet from now on? And give it a new name, instead of G8? Makes sense if they do so.
Duck – don’t be surprised if they rebadge the commodore as the new Chevrolet Malibu.. and the Ute to become the new El Camino Sports Yruck
Not only that but; according to Autoblog the VEs Aussie designed Zeta platform is tipped to be the basis for the next generation of Cadillac Sedans.. [hopefully they will let Holden design the way the new Caddies look as well]
There is also another report on Autoblog which states a number of GMs more substantial creditors have put forward an offer to the GM boiard whereby they will wipeout the debt in exchange for a major share in the restructured company – the following is an exerpt from the article:
Apparently the banks weren’t too thrilled with the idea of writing off $27 billion in debt for a mere 10% stake in the restructured company. In response to GM’s proposal to swap debt for stock, a committee of share holders has made a counter offer.”
The original GM offer would have given 89% of the automaker to the UAW [similar to the Chrysler proposal] and the federal government.
The counter proposal would shut the government out of the stock swap deal entirely.
Instead, creditors and the union would get stakes of 58% and 41% respectively with current stockholders receiving the remaining 1%.
However; the “bailout” money that GM has received from the the US government would remain as debt and be paid back at sometime in the future
If GM accepts the banks offer – then GM-Holden will be saved [which I'm sure is bound to annoy Sick of Bogan]