The Real Reason Pontiac Flopped

Before Pontiac became renowned for its "We Build Excitement" slogan in the '80s, the once-iconic American brand was ingrained in vintage car culture with its brilliant Pontiac GTO, undoubtedly one of the most legendary and famous muscle cars of the swinging '60s. The first-gen GTO unleashed in 1964 (via DrivingLine) kickstarted the muscle car era, later joined by other halls of fame members like the Dodge Challenger, Chevy Camaro, Ford Mustang, and Plymouth Road Runner, among others. The Pontiac GTO was so famous that the brand had no trouble dispensing 100,000 1966 GTOs to willing buyers.

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The Pontiac GTO was not only a sight to behold with its signature front grilles, bulbous hood scoop, and sleeker appearance, but it came with an optional Tri-Power upgrade to its standard 6.4-liter cast-iron V8 to lay down 360 horsepower on the asphalt. Equipped with the XS Ram Air Package, the mighty V8 musters 380 horsepower, Pontiac GTO was complete with all the histrionics of a legendary muscle car.

Pontiac kept the party going with the Grand Prix, Firebird, and Grand Am throughout the '70s and '80s, but the brand wouldn't last. 

Who could forget Burt Reynolds and his black-and-gold Pontiac Firebird in the hit 1977 film "Smokey and the Bandit?" But then again, large, heavy cars with thirsty V8 engines fell out of fashion during the '70s energy crisis (via The New York Times). Suddenly, gasoline prices were shooting through the roof, and numerous environmental concerns like excess pollution, climate change, and global warming were rearing their ugly heads. Consumers were now searching for more compact and fuel-efficient transportation, which is terrible news for a brand that built itself as the forerunner of the glorious muscle car era.

According to GM Authority, there were two main reasons why General Motors got rid of Pontiac (along with Saturn, Saab, and Hummer) during its Chapter 11 reorganization in 2009. First, the Pontiac brand had been unprofitable for a few years by then. Second, Pontiac was losing money for every rebadged Chevy sold. Making matters worse, Pontiac destabilized the Chevy brand since it formerly sold cars at a lower price than the latter. There were reports of GM executives and employees trying their very best until the end to save Pontiac, but the writing was on the wall.

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As a result, General Motors announced on April 27, 2009, that it would formally discontinue Pontiac amidst bankruptcy and corporate restructuring to focus on its four core brands: Chevrolet, Cadillac, GMC, and Buick. Still, the Pontiac Trans Am, Bonneville, Firebird, and GTO are forever alive in the hearts and memories of enthusiasts fortunate enough to live in a glorious, bygone era. However, the Fiero and Aztek remain keynotes in Pontiac's cherished lineage despite the latter becoming Walter White's vehicle of choice in "Breaking Bad."