General Motors considers fates of GMC, Pontiac

DETROIT -- But it may be a tough call: GMC makes money, and the plan for Pontiac was to shrink it to just one or two profitable models. Both are sold through the same Buick-Pontiac-GMC dealerships.

Still, the automaker is taking a look at every possible option for making the company smaller and leaner, says the source who didn't want to be identified because the discussions aren't public.

Stephanie Brinley, an analyst at AutoPacific, says getting rid of GMC isn't the best idea. "GMC has been the second-best-selling brand (for GM) and presumably a profitable brand."

But it does have some challenges: GMC is all trucks and SUVs, which may fail to meet higher federal fuel-economy rules. "That's the only reason I can think of that might make it make sense," she says.

If GM isn't selling GMC trucks, Brinley doesn't see those buyers moving down to Chevrolet trucks and SUVs. They'd likely head to higher-end brands. "You're not going to get them back," she predicts.

In February, GM submitted a restructuring plan to the government in its attempt to prove it is taking steps to make itself a viable company. The government asked for the plan as a condition on the $13.4 billion in loans GM already received. The automaker has asked for up to $30 billion in government aid.

President Obama said he wasn't impressed with the plan, saying it doesn't go deep enough, and gave the automaker 60 days to do more. GM has already said it would focus on four "core" brands: Chevrolet, Buick, Cadillac and GMC. Pontiac, which was supposed to be GM's performance brand, is set to become a niche nameplate. GM is looking for buyers for Hummer and Saab and trying to figure out how to wind down Saturn.

And Mark LaNeve, GM's vice president of sales, service and marketing, told trade journal Automotive News on Thursday that the automaker is sticking to that four-brand strategy.