Why SunTrust Racing really switched to Ford

UPDATE A GM spokesman declined to comment on a report Wednesday that the automaker was considering whether to eliminate its Pontiac, Saab and Saturn brands as a way to cut costs and improve its chances of getting as much as $12 billion in emergency federal aid. The Bloomberg report, quoting anonymous sources, said selling or dropping brands could help GM save cash and avoid running out of money, which the automaker has said it is in danger of doing early next year. In June, GM said it was reviewing the Hummer brand for possible sale.

11/26/08 In a surprise move this week Wayne Taylor's SunTrust Racing announced they were switching from Pontiac engines to Ford. But why? Is it because GM is looking to deep-six the Pontiac brand?

General Motors Corp., working to cut costs to win $12 billion in government loans, is studying whether to shed its Saturn, Saab and Pontiac brands in addition to Hummer, people familiar with the matter said.

Selling or dropping brands would save money and reduce overlap as the biggest U.S. automaker struggles to avoid running out of operating cash by year’s end, said the people, who didn’t want to be identified because no decision has been made. GM’s other U.S. brands are Chevrolet, GMC, Buick and Cadillac.

The review of the 82-year-old Pontiac division, one of GM’s earliest, shows the scope of the survival plan being given to Congress on Dec. 2 to show GM can repay federal aid. GM also seeks to cut debt levels and reduce costs for active and retired union workers, people have said.

Chief Executive Officer Rick Wagoner is under a deadline set by House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid. Congress has scheduled a Dec. 5 hearing on a $25 billion auto-industry rescue and may vote the week of Dec. 8.

A GM spokesman, Steve Harris, declined to comment on what may be included in the Detroit-based automaker’s plan.