Goodbye Pontiac – RIP

Posted by Larry Miller on April 28, 2009 under Why | Be the First to Comment

The glory days of Smokey Yunick and Fireball Roberts charging around the stock car tracks of the south and Farmer Arnie Beswick tearing up the drag strips through out the country are long gone… as are the Firebirds Burt Reynolds thrilled us with on the big screen. Government Motors snuffed out the life of this once proud automaker on April 27, 2009. Once number three in sales, Pontiac had slipped down near the bottom in recent years, a victim of union excesses, inept corporate management, insurance standards and government regulation.

Pontiac’s story is one of the entire American auto industry. Union contracts that were almost reasonably workable when the industry was living high on the hog and making so much money they built amazing buildings as monuments to themselves, seem oddly out of place when the profitable sales have been lost to foreign competitors. The adversarial relationship that seemed appropriate when the big three had the US market all to themselves remains, to the detriment of all concerned.

Times change, so do market conditions. The US automakers were up against foreign competition where labor and management understood they needed to work together to produce a product that would penetrate the US market. Somehow the this spirit of cooperation never caught on in the US, even at Pontiac where once there existed a pride in achievement. The unions kept asking for more and more and the greed and lack of resolve on the part of the companies made avoiding the lost production of a strike outweigh the long term destruction of overpriced contracts.

Many other factors played into the downfall of the auto industry, not the least were government regulations in the name of safety, fuel efficiency and others, just because they could. Some of us remember the foolish “double nickel” speed limits imposed by our “benefactors” in Washington until sanity returned. What we saw in this case and around the industry were companies that paid attention to their operations, but not the market or environment they lived in. Read more of this article »