GM hopes to follow Cadillac's success in repositioning products

January 6, 2004

By TERRY BOX / The Dallas Morning News

DETROIT – Long a leader in styling excess, Pontiac is discarding its busy bodies for a smooth, steely new look.

The General Motors Corp. division – which once produced classics such as the 1963 Grand Prix and 1965 GTO – has been adrift for years, critics say. But Pontiac wants to re-establish itself in the huge midsize sedan segment with the sleek 2005 G6, which will replace the largely unloved Grand Am.

"We want to make Pontiac an aspirational brand again," Lynn Myers, general manager of Pontiac, said Monday at the G6's official unveiling at the North American International Auto Show in Detroit.

"We want people hanging posters of Pontiacs on their walls again."

Shifting focus

For much of the last 10 years, the domestic Big Three automakers have focused on building profitable pickups and sport utility trucks. But now, with imports such as Honda and Toyota dominating the car side of the industry, all of the domestics are devoting more effort to their cars.

On Sunday, for example, Ford unveiled two new cars – the 500 sedan and Freestyle crossover vehicle – as well as a production version of the 2005 Mustang.

GM has already made considerable progress in revitalizing Cadillac and is trying to do the same with its other brands, said Gary Cowger, president of GM North America.

"All of this started with Cadillac at the upper end," Mr. Cowger said in an interview following the introduction of the G6. "We think we can do the same with Pontiac."

The G6 will compete in the largest segment in the industry, midsize sedans.

When coupe and convertible versions of the car are introduced in about a year, Pontiac officials said, GM hopes to sell about 200,000 of the cars annually. That would make it one of the company's highest-volume vehicles.

The G6 features smooth styling and an understated wedge shape. It will be built on GM's new Epsilon platform, which also is being used for the new Saab 9-3 and Chevrolet Malibu.

GM officials said the G6 will be a crisp-handling car that can be ordered with a 240-horsepower V6. Unlike the Grand Am – a lower-end sedan heavily represented in rental fleets – the G6 aims to compete with sporty "prestige" midsize cars such as the Mazda 6 and Nissan Altima.

No prices were announced, but the car should arrive at dealerships later this year, officials said. It will join the new 350-horsepower GTO, a revamped Bonneville with a V8 engine and a new four-cylinder roadster, the Solstice.

But like other domestic sedans introduced at the show, the G6 will try to appeal to buyers who have grown up with imports – and for the most part, prefer them, analysts say.

"It is light-years ahead of anything they have built recently, but they will have to convince younger, import-oriented customers that this is a competitive car," said Wes Brown, an analyst with industry consultant Iceology in Los Angeles. "GM has to accept that this is a stepping stone.

"It took 10 or 15 years to destroy the brand, and it will take at least that long to rebuild it."

Ford

Ford Motor Co.'s Lincoln-Mercury division announced new truck products. Mercury will begin building a version of the Escape sport utility called the Mariner that will be positioned as a "premium" compact SUV, said division president Darryl Hazel.

Of perhaps more interest in truck-crazy Texas, Lincoln will again try to sell a luxury pickup.

In about a year, Lincoln dealers will start selling the Mark LT, a version of the new Ford F-150 that features a restyled front and rear, and an interior more luxurious than high-end F-150s. Instead of conventional carpeting, for example, the truck will have sheepskin flooring, Mr. Hazel said.

"We think it will appeal to people who own land or have big toys and know how to work and play in style," he said.

Unlike the failed Lincoln Blackwood of three years ago, the Mark LT will have four-wheel-drive capability and be equipped to haul or tow heavy loads. No price for the truck was announced, but the Blackwood sold for about $50,000.

Nissan

Nissan Motor Co. introduced new versions of its midsize Frontier pickup and Pathfinder SUV.

Both look similar on a smaller scale to the new full-size Titan pickup and Armada SUV, and can be ordered with a 250-horsepower V6.

They should be available later this year.

Honda

Honda Motor Co. said it will start selling a hybrid version of its V6 Accord sedan this fall that will get the gas mileage of a four-cylinder sedan but have better acceleration than the regular V6.

Honda sells two other hybrids: the tiny two-seat Insight and a version of the Civic sedan.

GM

As part of a new promotion, GM said it will give away 1,000 cars and trucks nationwide over the next two months.

Participants can go to a GM dealership and push the button that activates the OnStar system on vehicles equipped with the telematics system.

The system will notify them if they have won the car or truck.

E-mail tbox@dallasnews.com