End of the Line for the Pontiac Vibe

General Motors is planning to shut down its Pontiac brand, perhaps selling it off if the company has a change of plans. As of right now, the world's former top selling automaker is struggling to survive and is being given a second lease on life thanks to bankruptcy restructuring. If all goes according to plan – and that is a big if – GM will emerge from bankruptcy with fewer brands, fewer models, but a more focused future, one that could help the century old car company survive perhaps thrive.

Say Good-Bye To Pontiac

Closing down Pontiac is probably the most curious decision made by GM over the past several months. Selling off Hummer makes sense – few people want these big SUVs anymore – and finding a buyer for Saab is ideal given that GM never did the Swedish brand right over the years. Even selling off Saturn is okay, especially since the company really needs to concentrate on bolstering Chevrolet, but killing Pontiac simply is a curious move.

Right now, Pontiac is the third best selling brand owned by GM. Most Pontiac models are sold under the same roof as Buick and GMC, two brands that the company plans to keep. Pontiac outsells Buick by nearly a 3 to 1 ratio too which means that Pontiac buyers will need to be steered to Buick or GMC, which isn't likely to happen.

Just One Model Remains

GM says that Pontiac will be wound down by the end of 2010, but recent news is showing that either those plans are being accelerated or that Pontiac will offer no more than one model in the coming months.

Just this past week GM announced that the Pontiac Vibe, a compact crossover based on the Toyota Matrix and built with Toyota at a jointly owned facility called NUMMI in California, would be facing the ax. Not in 2010, not at the end of this year, but in August on the eve of the upcoming model year. This move means that GM will not have, at least temporarily, a stake in its joint venture with Toyota in the form of a model to sell. GM says that this will change as it explores its options going forward.

The Pontiac G6 Lives On

As far as the one Pontiac model that will on goes, that car will be the G6, a favorite of the rental car fleet. GM may no longer have any interest in serving the Pontiac consumer, but its fleet customers will still have access to the G6, at least for one more year.