Industry Report: GM's Bob Lutz Considers Dumping One Brand to Curb Losses

Rather, the nameplate to get the axe will come from within the North American market, if it comes at all. Addressing a Morgan

Due to a lack of investment in recent years, Buick and Pontiac are both "damaged brands", according to Lutz. (Photo: General Motors of Canada)

Stanley automotive conference in New York, the VP inferred that due to a lack of investment in recent years Buick and Pontiac are both "damaged brands", although GM is attempting to correct its wrongs with an assortment of new vehicles just arriving now or due to arrive on the market soon. If some brands, not necessarily Buick or Pontiac, fail to meet sales projections, he continued, "then we would have to take a look at a phase-out. I hope we don't have to do that. What we've got to do is keep the brands we've got."

GM made a difficult decision a number of years back when announcing Oldsmobile's demise, which resulted in a gradual phase-out ending only this year. While fans of the centenary brand were disappointed, there weren't enough immediate sales and few future prospects, as

GM made a difficult decision a number of years back when announcing Oldsmobile's demise. (Photo: General Motors of Canada)

Oldsmobile buyers were an aging demographic, to justify its existence.

Of course Pontiac reaches a younger demographic than Oldsmobile did, or does Buick for that matter, but its products have struggled to remain competitive against those made by similarly "sporty" Asian brands, such as Honda, Mazda and Nissan. Only it's almost defunct Sunfire compact has been a big seller, and then merely because it has been priced so low that it can hardly be profitable. The new Pursuit and G6, both surprisingly good, seem to be doing well, but both models are still in their first-year honeymoon phase, with long-term prospects unknown.