Final answer:
The Pontiac Motor Company went out of business due to the economic downturn, changing consumer preferences, and increased competition. To save the company, Pontiac would have needed to adapt to changing consumer preferences and invest in developing more fuel-efficient and technologically advanced vehicles.
Step-by-step explanation:
The Pontiac Motor Company went out of business due to a combination of factors, including the economic downturn, changing consumer preferences, and increased competition. The economic downturn, which affected the entire U.S. automotive industry, made it difficult for consumers to obtain loans and led to a decrease in demand for large, gas-guzzling vehicles like the SUVs that Pontiac produced. Additionally, as consumers became more conscious of the environmental impact and the cost of fuel, SUVs lost their status symbol status and became synonymous with excess and waste.
Moreover, Pontiac faced stiff competition from Japanese automakers who were producing smaller, more fuel-efficient cars that were also more reliable and cheaper than American-made cars. The popularity of Japanese cars, along with their innovative manufacturing strategies, posed a major challenge to the U.S. auto industry. Detroit's dominance in the automotive market and complacency within the industry also contributed to the decline of American automakers.
To save the company, Pontiac would have needed to adapt to changing consumer preferences and invest in developing more fuel-efficient and technologically advanced vehicles. They could have also explored partnerships or collaborations with other automakers to improve their competitiveness in the market.