Details About Pontiac GMC Merger

02/22/96

Reuters reported more details about the GM's plans to merge their Pontiac car division and their GMC truck divisions. The new division is called Pontiac-GMC, and they will market cars and trucks in the US through 3,736 franchised dealers.

The merger is not particularly new: GM's plans mostly formalize something that has already been happening. Last October GM announced a plan to link all Pontiac and GMC franchises. Currently 1,585 out of 2,870 Pontiac franchises are combined with GMC franchises--that's roughly 60% of them. GM expects it to take a couple of years to complete the car/truck alliance, but said that teams are already working with dealers. Some dealers will be relocated, others will get new franchise agreements, and still others will be consolidated. The new division will be led by former GMC Division General Manager Roy Roberts. John Middlebrook, Pontiac's current general manager will replace retiring Chevrolet Division General Manager J. C. Perkins.

General Motors has announced that consumers will see no difference in GM brands on car lots. Ron Zarella, a vice president at GM, bills the changes as an effort "to take advantage of opportunities to be more effective and efficient." The merger combines management responsibilities for sales and service, finance, personnel, communications and marketing services. Last year GM sold 599,123 Pontiacs and 462,185 GMCs.

Paul Dever -- The Auto Channel