Background
In 1963, General Motors banned all of their subdivisions from being involved in racing. So, with the ban in place, Pontiac decided that emphasizing performance on the street was the way to go. Executives at GM saw that they could turn the new second-generation Pontiac Tempest into a sports car if they gave it a big enough engine.
However, there was a problem. GM had a policy that said no engine with a displacement greater than 5.4L could be put into an A-body up till 1968 when they released their new high-performance Pontiac GTO line. This was due to the public’s demand for cars that could realize or come close to 10 seconds cars. GM allowed for loopholes in their Pontiac GTO series by offering option packages with bigger engines that could be purchased with significantly more power.
By promoting the big engine options as a standalone high-performance model, they could appeal to the youth market and the 10-second car demand. A man by the name of John Delorean came up with the GTO name, "inspired" by the highly successful racing car, the Ferrari 250 GTO.





