The Art of Compromise
Effective as it was, the sleight of hand involved in the P-car's approval was something of a devil's bargain. The total budget for the program was set at only $410 million, including plant retooling, a very modest sum for an all-new model, even then.
With such a limited budget, Aldikacti decided his best bet was to sequester the P-car from the normal Pontiac organization. Most of the engineering development was done at an outside firm, Engineering Technology Ltd. (ENTECH) of Troy, Michigan. The design of the P-car, meanwhile, went not to John Schinella's Pontiac Two studio, but to the Advanced Design Three studio, run by Ron Hill. Keeping the P-car out of the normal development channels allowed Aldikacti to control costs and limit bureaucratic delays and interference. Less happily, it also reflected the project's marginal status within the division.
The budget quickly squelched any ambitions Aldikacti had of making the P-car America's answer to the Ferrari Dino. Developing a unique engine, for example, would have exceeded the project's total budget, as well as pushing the P-car over its target price. Aldikacti had little choice but to use existing components, drawn from GM's parts bin.
The corporation's principal objection to mid-engine design was that it required a rear transaxle and independent rear suspension, both of which were expensive. In 1978, however, GM was readying a new crop of low-cost, front-wheel-drive X-cars (the Chevy Citation/Pontiac Phoenix, et al) for the 1980 model year. Aldikacti and the engineers at ENTECH realized that if they rotated the MacPherson strut front suspension and transaxle from the X-cars 180 degrees, they could use them in the rear of the P-car with fairly minor modifications. The P-car's front suspension, meanwhile, was borrowed from the subcompact Chevrolet Chevette. This kludge of existing pieces was cheap, but far from ideal.
Aldikacti had dreams of a high-revving, all-aluminum V6, but the budget and the ambitious fuel economy target made that impossible. Early on, the P-car was intended to have a 1.8 L (112 cu. in.) four, probably the GM 122 engine later used in the 1982 J-cars (Chevrolet Cavalier/Cadillac Cimarron/et al). Later, when the project budget shrank even further, the fuel economy target was relaxed, and the 1.8 L was replaced by the familiar 2.5 L (151 cu. in.) Iron Duke, a rather rustic pushrod four, derived from Pontiac's venerable V8. The Iron Duke was slow revving, heavy, noisy, and underpowered, but, like the hodgepodge suspension, it was cheap and available.