General Motors Corp. said Tuesday it is combining its Pontiac and GMC marketing divisions as part of a plan to streamline its dealer network and sharpen the images of its car and truck brands.
"When Pontiac and GMC are together, they generally are more effective than when they are separate," Ronald L. Zarrella, GM vice president and group executive for North American sales, said at a news conference.
"Both Pontiac and GMC have long recognized the complementary nature of their businesses and have participated in joint training and marketing events."
The merger's immediate effect on the customers of the world's largest automaker will be minimal. About 1,600 of Pontiac's 2,870 franchised dealers already own franchises to sell GMC, the company's trucks-only brand.
Officials said the merger of GM's second- and fourth-largest marketing divisions would result in significant savings by eliminating overlapping functions, but did not say how much.
However, it would be several years before the merger's ultimate results are realized, said Roy S. Roberts, 56, the GMC general manager who is being promoted to run the combined division.
GM's goal is to have Pontiac's cars and minivans on sale alongside GMC's pickups, sport-utility vehicles and vans, giving the combined dealerships a full lineup aimed at affluent buyers of sporty cars and luxurious trucks.
"We don't think it's going to change our life as a dealer," said John P. Peterson, a Pontiac-GMC dealer from Bloomington, Minn., who was installed last week as president of the National Automobile Dealers Association.
The two divisions have about 1,150 employees combined. Officials said they did not know how many jobs would be eliminated by the merger.
The merger of the two divisions has been expected for months in Detroit. Company officials told dealers at last week's NADA convention in Las Vegas that it was under strong consideration.
It is part of an overall reorganization aimed at establishing strong brand identities for the cars and trucks produced by the automaker's North American Operations unit.
Part of GM's problems in the 1980s were blamed on fuzzy brand identities and overlapping products that had its seven sales divisions competing with each other for the same customers.
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GM MERGES PONTIAC AND GMC UNITS
Author: By The Associated Press
Dateline: WARREN, MICH.
Article Text:
Caption:
(1) Photo headshot of (Roy S.) Roberts
(2) Graphic/chart - GM Sales, Marketing Divisions
General Motors Corp.'s vehicle sales and marketing divisions, after Monday's announcement of the merger of Pontiac and GMC.
BUICK MOTOR DIVISION
Franchised dealers 2,866
1995 U.S. sales 471,819 cars
1994 U.S. sales 546,836
CADILLAC MOTOR CAR DIVISION
Franchised dealers 1,600
1995 U.S. sales 180,504 cars
1994 U.S. sales 210,686
CHEVROLET MOTOR DIVISION
Franchised dealers 4,400
1995 U.S. sales 2,463,811 cars,light trucks
1994 U.S. sales 2,451,123
OLDSMOBILE DIVISION
Franchised dealers 2,900
1995 U.S. sales 387,545 cars, light trucks
1994 U.S. sales 448,945 - -
PONTIAC-GMC DIVISION
Franchised dealers:
Pontiac 2,870
GMC 2,451
(totals include 1,585 franchised for both nameplates)
1995 U.S. sales Pontiac, GMC 1,036,801 cars - and light
trucks
1994 U.S. sales, Pontiac and GMC 1,062,223
sATURN CORP.
Franchised dealers 351
1995 U.S. sales 285,674 cars
1994 U.S. sales 286,003
Note: Many dealers hold more than one franchise. In all, 8,500 dealers have about 17,500 GM franchises.
PHOTO, GRAPHIC
Copyright 1996 St. Louis Post-Dispatch
Record Number: 9602210258
