Copied this from a post over on the H.A.M.B. Wasn't sure where to park it but I thought it was a very good read. I have no clue as to who the actual author is.
There doesn't seem to be a lot written about the history of the Canadian Pontiac. I may be wrong but I just haven't been able to find that much. It occurred to me that there are probably many who do not know the reasons why a uniquely Canadian Pontiac existed at all. I don't claim to be the definitive historian on Canadian Pontiacs but I do know at least part of the answer to how the General Motors 7000 series vehicles commonly called "Canadian Pontiacs" came to be.
I worked for General Motors as an engineer for 37 years retiring in 1998 so my tenure there spanned a substantial portion of Canadian Pontiac development. The development of the 7000 series Pontiac did not happen overnight but was rather a progressive departure from the US design brought on by economic considerations unique to the Canadian market. The Pontiac name plate was introduced by Oakland in the United States in 1926 as a lower price Oakland model designed to fill the price gap between Chevrolet and Oldsmobile. It was so successful in its mission that by 1932 the Oakland brand name was dropped and Pontiac achieved full status as a brand divisional name placed squarely between Chevrolet and Oldsmobile.
While its relative market position has never changed to the present day and Pontiac remains the second best seller for GM in the United States, it wasn't very long before Canadian requirements for the Pontiac began to diverge from our American counterparts. The decision to produce a Canadianized version of the Pontiac was not taken in one step but was rather a progressive departure from the US design driven by a succession of economic considerations unique to Canada and by advancements in automotive design and production methods that drastically increased investment cost to produce a separate vehicle.
The first factor was the limited size of the Canadian market for automobiles; in total less than 10 percent of the US market in any given year. Because of this limitation no single vehicle line except for Chevrolet offered sufficient sales potential for a Canadian dealership to exist and so General Motors of Canada Ltd. developed a marketing strategy early on which offered dealer franchises based on combined product line packages, the most common of which still exists today as Chevrolet/Oldsmobile/Cadillac dealerships versus Pontiac/Buick/GMC. Similar franchise strategies were developed at Ford and Chrysler as well during the same period.
Almost from the beginning at General Motors of Canada there was a concentrated effort to equalize the product packages offered between Chevrolet/Olds/Cadillac and Pontiac/Buick/GMC dealers. The problem in maintaining such a balance was Chevrolet volume which in many years equaled or exceeded the total sales volume of Pontiac, Olds, Buick and Cadillac combined. To combat this Pontiac was selected in an attempt to provide an entry level vehicle which could compete with Chevrolet in price and design features head to head thus giving Pontiac dealerships a means to compete directly in the entry level market.
In attempting this GM quickly ran up against additional factors that made use of the US Pontiac design less than acceptable. Canadian importation law imposed duties of as much as twenty-two percent on finished vehicles and automotive components coming into Canada. With the exception of Cadillac, it was not economically viable to import finished vehicles into Canada at high duty rates. As a result from an early period and until the automotive free trade agreement (autopact) was signed between Canada and the US in 1966, all other GM models were produced in Canada.
For the most part components to complete these vehicles on Canadian assembly lines were imported from the United States. The exception of course was Chevrolet whose volume justified the high investment necessary to manufacture major driveline components such as engines and transmissions. Keep in mind that each division in the US shared little in common when it came to chassis so in order to produce anything but Chevrolet in Canada it was necessary to import and pay duty on engines, transmissions, differentials and virtually all other chassis and sheet metal components for these cars.
While Olds and Buick enjoyed enough price flexibility to do this, Pontiac was never going to compete head to head with Chevrolet in Canada with an American model Pontiac assembled in Canada from imported parts on which duty had to be paid. Something had to be done to lower Pontiac's price both in terms of investment and component cost.
The answer became the 7000 series Canadian Pontiac. To avoid duty on major chassis items such as engine and transmission it was evident that such items must be produced in Canada. For many years they were. The Pontiac L-head engine was probably the best example of this, the straight six version of it being produced in Canada for many years. But by the mid 1950's the greatest sustained yearly model change program in automotive history had begun. When Pontiac Motor Division dropped the L-head engine in 1955 even the most optimistic sales figures could not justify separate Canadian tooling for the American Pontiac V8 engine or the hydramatic transmission it was teamed with. Furthermore the US Pontiac no longer offered a six which would put Pontiac at a disadvantage against Chevrolet in the Canadian market. In a decision that departed from everything that was holy in the autonomy of the US car divisions, it was decided that a hybrid based on a Canadian produced Chevrolet chassis which offered both a six and a newly introduced V8 was the only way Pontiac could compete in Canada. To save on investment the Pontiac would be produced on the same assembly line as Chevrolet. Similarly the Pontiac and Chevrolet versions of the Chevrolet small block V8 and Powerglide transmission were also manufactured together as were rear axles, brakes, exhaust systems, radiators, and much more.
By 1958 with the introduction of the Chevrolet 'X' frame the transformation was complete and 7000 series Pontiacs were by then a much different car from their US look-alikes. Mechanically they now shared virtually everything with Chevrolet but outwardly in appearance it was hard to tell them apart from an American Pontiac.
It is a common misconception that all economies of scale were achieved in one direction by commonizing Pontiac with Chevrolet. There are many examples where this process worked in reverse such as the uniquely Canadian Pontiac air cleaner which was installed on Canadian produced Chevrolet small block V8's as well and the common electrical wiring harness which is more Pontiac than Chevrolet and differs in design from both us Chevrolet and Pontiac.
And so for many years Canadian Pontiac fulfilled its purpose as a Chevrolet fighter, in some years almost equaling Chevrolet sales in Canada. With the introduction of compact models in 1962, the same philosophy drove uniquely Canadian Pontiac models of these Chevrolets starting with the Acadian version of the Chevy II. In fact as early as 1959 a Pontiac version of the Corvair was tooled for Canadian production but was cancelled just weeks before introduction. It too was initially to be called the Acadian.
But the autopact of 1966 changed the outlook for the Canadian auto industry for all time. For one thing it began the process of rationalization to allocate high volume production of fewer models exclusively to Canada in exchange for the duty free importation of other models and components for other models from the united states. Canadian Pontiac was the eventual victim of this rationalization.
Though its uniqueness continued for several years after 1966 by the early 1980's those Canadian Pontiac model names that still existed were little more than Chevrolets with Pontiac name plates and many of them were manufactured in US assembly plants for the Canadian market. In addition many of the American Pontiac models had found a place in the Canadian market and some of these were manufactured in Canada for sale both in Canada and United States.
But there was one last hurrah for Canada. When Pontiac motor division prematurely dropped its full size car line and downsized the Bonneville to intermediate size status US Pontiac sales plunged. Canadian Pontiac Parisiennes were hurried into production for the US market to bolster sales. By this time the Parisienne was little more than a Caprice with a Pontiac style grill so the following year Fisher Body actually resurrected old dies to bring back the previous Catalina rear end styling to make the car more distinctively Pontiac in appearance. For the American market. It continued in production for some years still bearing the Parisienne name and still proudly displaying the made in Canada stickers throughout US showrooms.
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Yes thanks indeed. I had read that sometime before but you can not beat first hand accounts from someone who lived and breathed it. I find it interesting and compelling that a GM Canada employee of 37 years who worked through the era refers to the Acadian as a Pontiac model. I never knew about the late cancellation of the "Pontiac" Corvair. Now that would have been a real neat collectable. You can also feel the pride he has in the Canadian Pontiacs.
I had heard about the Acadian version of the Corvair previously, I didn't realize it came that close to production. Wonder how that would have looked being I can't think of many body mods that could have been made to distinguish it.
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I had heard about the Acadian version of the Corvair previously, I didn't realize it came that close to production. Wonder how that would have looked being I can't think of many body mods that could have been made to distinguish it.
This is said to be Pontiac's version. I see a lot of the early Tempest in that front end.
Interesting footnote. I sent some photos of my car to Ultimate GTO web site last week. Interesting topical comments there. I don't know who "luch" is but sounds like a GM Canada manager:
(message from Royal Oak): Never understood why they put Chevrolet engines in Canadian Pontiacs, but you'd have to admit that a 'Corvette' powered LeMans GT with power on par with a 455 73 GTO is kind of neat.
(message from luch): We did it for two reasons, keep jobs in Canada using McKinnon high quality engines and to eliminate tariffs on imported engines.
Thanks for posting that. Also you guys should check out the story on Canadian Pontiacs in last months Collectible Automobile magazine. It's a bit pricey, but well worth it