GM to kill Pontiac?

Reports from the United States indicate General Motors will announce its plans to close the Pontiac brand as early as Monday morning US time (later tonight in Australia). The 83-year-old brand is expected to join Hummer, Saab and Saturn as the fourth operation to be unloaded by the ailing automaker.

Initially, when GM was forming a plan to try and get headed in the right direction again (more here), Pontiac was considered safe. The idea was to run the brand with a much reduced line-up alongside the Buick and GMC operations -- the company focusing on operation in a market niche appealing to performance-car consumers. But while GM or Holden spokespersons were being tight-lipped across the weekend it now appears that Pontiac's fate has been sealed.

Pontiac is credited by many with creating the muscle car concept when it launched the GTO in 1964 (pictured). It produced such iconic cars as the Firebird which earned international fame with its starring role in the cult movie classic 'Smokey and The Bandit' alongside Burt Reynolds.

The decision to cut Pontiac will allow GM to focus on what it considers its core brands -- Chevrolet, Cadillac, GMC and Buick -- which it believes can return it back to profitability. The hope is that by eradicating Pontiac, GM's break-even point will shrink to less than 10 million cars per year.

Another objective would be to speed-up the dealer consolidation that GM is targeting. The company currently has over 6000 US dealerships and wants that number reduced to around 4000 as quickly as possible.

Just what the decision will mean for Holden remains unclear. The Pontiac G8 export program has been a crucial part of Holden's export plans. The car had received good reviews in America and was selling steadily in a boost for the team at Fishermens Bend. Having already killed the Ute export plan in January this year the decision to axe G8 sales in the US could have a significant affect on Holden's plans for the Commodore.

We'll bring you an update as soon as news breaks from America, so check back soon.

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