2005 Pontiac GTO Test Drives

Return of the Goat

The GTO is back. Should it be?

Among the many plaudits that will be tossed at General Motors vice-chairman Robert A. "Bob" Lutz whenever he retires will be the renewed sense of purpose he brought to the world's largest carmaker.

Also, he will likely be credited for saving Cadillac, and perhaps for making once-moribund divisions like Buick seem fresh and lively again.

But news this past month that, in the wake of falling incentives, came a 12% dip in General Motors sales indicates a dark side to Lutz's magic -- a reliance on smoke and mirrors to get the job done.

Remember, Lutz has always been a salesman. A brilliant one, yes, but really someone who is a fast talker and who knows how to regale. He has, to be sure, always understood that little details can make a difference, which is why he had that whole battle at Cadillac to soften the hard new styling of the CTS when time came for the SRX and the XLR. And why he convinced decision makers at Pontiac that incessant body cladding looked cheap, not hip.

Lutz is also responsible for the current Pontiac GTO, which, he hopes, will bring pizzazz back to the brand. To do so, he has imported from GM's Australian subsidiary a slightly massaged Holden Monaro Coupe and upped the car's V-8 output to 350hp. When Lutz announced the rebirth of the GTO at the 2002 New York International Show, he glowingly described the Monaro as "the most sought-after, high-profile car on Australian roads right now."

Hmmmm.

The problem is that GTO, which in its 1960s-70s heyday was about sexy styling and road-stomping muscle, is lagging way behind targeted sales, with more than a 100-day supply on hand at most dealerships. GM will be lucky to shift 12,000 units of the $31,795 GTO when it wanted to move at least 18,000. So why aren't the cars moving off the lots?

A lot of reasons, but the first one is likely that unlike in the bad old days when the first GTOs (nicknamed "the Goat") burned rubber on American streets, people have many more choices than they used to.

Still, we think the second major flaw with this car is that it's priced all wrong. Instead of keeping the sticker below $25,000, to compete with Ford Motor's Mustang, the last real muscle car on the road, at nearly $32,000 GM has the GTO competing with BMW's 3 series, Nissan Motor's 350Z, and Mazda's RX-8. In that echelon, the GTO stands little chance.

Beyond price, there's one other blunder we find rather remarkable with regard to the GTO -- it's supposed to be a crown jewel for Pontiac. The problem with that idea is that there's no other product in the jewelry box that captures the market's imagination. The Montana? It's a repackaged Chevy Venture. The Vibe? It shares a platform with Toyota Motor's Matrix. The Bonneville, Grand Am and Grand Prix all have seen increased sales so far this year, but selling these older designs comes at a hidden cost -- bigger incentives than those of most of Pontiac's competition.

Cut the incentives and sales droop, indicating that the Pontiac name doesn't mean what BMW, Nissan, and even Mazda means to buyers. It's about the brand, and if the brand isn't strong how will GM get people to pay a premium for the GTO?

As for the GTO as a car on its own, there are lessons there, too.