Holden exports facing stop sign

[Sprint XR8]

HOLDEN'S export program to the US will hang in the balance next week as General Motors considers ditching the Pontiac brand and 11,000 unsold export Commodores gather dust.

Adelaide-built Commodores are shipped to the US as Pontiac G8s, but GM is reviewing prospects for three of its eight divisions, with Pontiac top of the list, in a desperate bid to cut costs and secure $US50 billion ($76 billion) in federal funds.

The plan, which must be ready for US legislators by next weekend, leaves a question mark over the future of Pontiac, Saab and Saturn, according to Bloomberg reports, while Hummer is already up for sale.

The Holden-built Pontiac G8 is part of the problem, as it is struggling to find buyers.

Just 13,000 have been bought since shipments began at the beginning of the year, and inventory levels exceed 11,000 cars -- or 283 days' supply -- the third-worst for any GM model, according to specialist US website Automotive News.

Potential Pontiac G8 buyers must now factor in an uncertain future for the brand.

"It's a challenging business environment for carmakers around the world," said a spokesman for GM Holden, Jonathan Rose. "We're very proud of our export program."

He denied Holden was adding to Pontiac's woes, and said export shipments were continuing. Mr Rose played down reports yesterday that Holden is planning to build a four-cylinder car alongside the Commodore.

"We're looking at many options," he said.

"But we don't have any announcement to make."

The 82-year-old Pontiac division is one of GM's oldest, but its "affordable performance" models peaked in the 1970s.

The Holden Monaro built here until three years ago was used to revive the famous Pontiac GTO nameplate, and 32,000 were sold stateside between 2003 and 2005.

But Pontiac's 1000 US dealers have been hit hard by the collapse of the car market, with sales down 21 per cent this year.

Despite this, Holden is adding a high-performance G8 version to the line-up, and the Commodore Ute, rebadged as the Pontiac G8 Sports Truck, will be exported late next year.

Holden desperately needs fresh overseas markets to keep its Adelaide factory running, with Commodore sales down 16per cent this year.

The company expected US demand for Pontiac G8s to boost exports, but recently announced plans to shut its factory for 25 days in the first quarter next year, in addition to its four-week Christmas holiday closure.
http://www.theaustralian.news.com.au...-13232,00.html