GM's brand makeover

2009 Pontiac G8 GXP

Pontiac, which offers seven different models (including the tiny G3, scheduled to arrive this spring) is about to get downsized, GM says. It's not considered one of the automaker's "core" brands, and it will become a niche brand built around sporty cars.

As it structures Pontiac around cars like the G8 performance sedan and the two-seat Solstice sports car, GM will have to resist pressure to water it down with filler products, as it often has in the past.

That would mean getting rid of models like the G5 and the upcoming G3, both virtually identical to Chevrolet economy cars.

Pontiac should then market a version of the Chevrolet Camaro, according to J.D. Power & Associates analyst Tom Libby. It would be called the Firebird, of course - but with even more performance than the Camaro.

GM will have to convince dealers to go with the program. In the past, the problem has been that dealers wanted a full line of vehicles to sell so they could compete, car for car, against Chevrolet dealers. But in the end, says, Libby, a focused Pontiac brand is better for everyone than a full line-up.

"I think it's crucial that everything by a brand be in sync with its core value message," he said.

Despite the new "niche" label, GM executives still insist that Pontiac will offer small fuel-efficient cars in the future. But they promise they will be fun, small and fuel-efficient.

NEXT: Buick