Pontiac pays the price

The last of the Australian-made G8 sedans and cars will head to America next year.

General Motors decided this week that Pontiac, Hummer and Saab must be sacrificed in a survival plan that will cost 20,000 jobs, 4000 dealerships and a couple of production lines.

The last of the Australian-made G8 sedans will head to America next year, and possibly even sooner. Pontiac will be gone by December 2010.

There is still a chance that the Holden Commodore will continue to be Australia's main export.

There are rumors around Fishermans Bend pointing to a plan to continue the G8 program by replacing the Pontiac badge with a Chevrolet badge. Ute would have looked great in the role of a revived El Camino.

Even Industry Secretary Senator Kim Carr sees the potential, but he's a man with rare vision on the automotive front.

“There is a place in the US market for Australian-made cars, no matter the badge. The government is working closely with the industry to unlock new export opportunities,” he said this week.

The G8's decision was difficult, but it was the only direct blow to GM Holden. White-collar layoffs are still a possibility as the company is the "right size" for its future in the world of GM contracts.

And it proves that Holden is doing a great job as a company and an international asset.

Fishermans Bend designers work for Europe, Asia and the USA. Local engineers created Chevrolet Camaro from VE Commodore (it was a hit in America) and are working on global projects and cars from South Korea.

The list of Australian exporters ranges from GM China boss Kevin Whale to ace designer Mike Simcoe in Detroit, sales manager Megan Knock at Hummer, and even a lawyer in India. There are dozens of them.

It will take Holden some time to adjust to Pontiac's decision, but the best news on the production front is that new boss Mark Reuss has sped up production of the compact Cruze for the Adelaide plant.

It could catch up in the second half of next year and will almost certainly go overseas as the new export star in Asia and South Africa.