Why The Pontiac Vibe Was Discontinued

The Pontiac Vibe was a bit of an anomaly in General Motors' product lineup when it was introduced in 2002 for the 2003 model year. The compact hatchback with available all-wheel drive and Toyota DNA was dissimilar from anything else at a Pontiac dealership at a time when the only other compact offerings from GM were the comparatively sedate Saturn Ion and Pontiac Sunfire/Chevrolet Cavalier twins.

Manufactured at the NUMMI plant in Fremont, California, the Vibe was produced as part of a joint venture between General Motors and Toyota and was a kissing cousin to the Japanese automaker's Matrix model in both design and mechanicals. Offered at a time when small SUVs were a rarity, the Vibe's optional all-weather capability and practical packaging were ingredients that might sound like a recipe for success. Yet after only seven model years, the Vibe was discontinued after General Motors and Toyota ended production at the NUMMI plant in 2009. What motivated General Motors to drop the ax?

The Vibe never sold in large numbers for Pontiac, with 64,271 sold in 2003 and just 33,842 in 2009, according to GoodCarBadCar. But relatively low sales do not tell the whole story of the demise of the Vibe. In 2008, a worldwide economic recession took a huge toll on the automotive industry. General Motors filed for bankruptcy in 2009, and as part of a bailout agreement with the United States government, the automaker agreed to cut costs and restructure its product portfolio. General Motors made the decision to discontinue the Pontiac, Saab, Saturn, Hummer, and Oldsmobile brands — with Chevrolet, GMC, Buick, and Cadillac spared from oblivion. It was an unfortunate and sudden end of the road for the Vibe and for Pontiac, a brand with a rich and storied history of producing fun and affordable performance cars. 

Bob Lutz, General Motors' Vice Chairman at the time of the restructuring, in an interview with Motor1 said the following in regards to the decision to shut down Pontiac: "Pontiac, I dug my heels in. But their hearing aids were turned off, they said, 'It's a lousy brand, it's been unprofitable for years.' I pointed to all the signs of brand health; Youthful buyer enthusiasm for the brand, etc. I just wasn't able to put it over the goal line. So unfortunately it died. I still consider that to be borderline a tragedy."