Could Pontiac be a phoenix?
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If one group gets its way, the Wide Tracking Pontiac may live to drive another mile.
SavingPontiac.org, is a grassroots effort to save the Pontiac brand, which General Motors is in the process of shutting down.
The organization said in a news release, “Reviving the brand into a new entrepreneurial venture will immediately contribute significantly to the economy.”
They hope to convince the public, as well as union members, of the possibility of more years of driving excitement.
The group is made up of unnamed ‘executives and Pontiac enthusiasts,’ who think getting a government loan for $3 billion would do the trick. Their four-step solution is spelled out on the site:
1) Contribute the Pontiac brand and a dormant plant like the Spring Hill,Tenn., plant to a new entrepreneurial, passionate management team and the future employees of Pontiac.2) Fund the new company with $3 billion in preferential term loans from the federal government. (Only 6% of the $50B given to GM, only 3% of total automobile bailout funds or less than 1% of the unspent bank bailout funds)3) Company does an IPO within five years to pay back loans, and government (taxpayers) receive 5% to 10% of the IPO proceeds and the loans are repaid. 4) The estimated enterprise value at the end of five years exceeds $9 billion.
-- Doug Stewart