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GM Considers Axing Brands to Win Aid

Pontiac, Saab, Saturn could go on chopping block

By Rob Quinn,  Newser Staff

Posted Nov 27, 2008 4:26 AM CST
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(Newser) – General Motors is considering eliminating some of its brands in an effort to win federal aid, sources tell the Detroit Free Press. The automaker, sent back to Detroit by Congress and told to come back with a better business plan, is said to be considering all options, including ditching its Pontiac, Saab or Saturn lines.

Critics have long said GM would benefit from getting rid of some of its eight brands to cut costs and reduce overlap. The automaker, which put its Hummer line on the block in June, is seeking $12 billion in federal loans, without which officials say the company will run out of operating cash by the start of next year.

An unsold H3 sits at a Hummer dealership in Castle Rock, Colo.
An unsold H3 sits at a Hummer dealership in Castle Rock, Colo.   (AP Photo/David Zalubowski)
An unsold 2008 Denali sports-utility vehicle sits at a Buick/Pontiac/GMC Truck dealership in the south Denver suburb of Littleton, Colo., last month.
An unsold 2008 Denali sports-utility vehicle sits at a Buick/Pontiac/GMC Truck dealership in the south Denver suburb of Littleton, Colo., last month.   (AP Photo/David Zalubowski)
The 2009 Pontiac Solstice is on display at the Los Angeles Auto Show today.
The 2009 Pontiac Solstice is on display at the Los Angeles Auto Show today.   (AP Photo/Ric Francis)
Unsold 2008 G6 coupes and sedans sit at a Pontiac dealership in the northern Denver suburb of Thornton, Colo., last summer.
Unsold 2008 G6 coupes and sedans sit at a Pontiac dealership in the northern Denver suburb of Thornton, Colo., last summer.   (AP Photo/David Zalubowski)
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COMMENTS
Showing 2 of 2 comments
Guest
Nov 29, 2008 4:47 AM CST
Pontiac is the only 'interesting' GM brand left...
Guest
Nov 27, 2008 11:43 PM CST
A lot of GM's cars look exactly the same... the idea of shedding brands makes sense to me. Why run two separate marketing campaigns to sell one kind of car?

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General Motors • Pontiac • auto industry • Rick Wagoner • bailout • Hummer

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