What is a GTO and why was it called a GTO? 

The terms 'GTO' and 'GT' are European racing classifications. The Italian term, 'Gran Turismo Omologato', means Grand Touring class production vehicle, homologated (to approve, especially to confirm officially) for racing. The name came to mean a large, high-performance sports car comfortable enough for long trips or 'touring', as opposed to the smaller, less comfortable 2-seater 'true' sports car.  A GTO was usually a collection of parts from other vehicles that came together, all from the same manufacturer, to form a new purpose, racing.  The name GTO is owned by the FIA (Federation Internationale Automobile). Although the Pontiac GTO was the original “Muscle Car”, its name was not original. It was "borrowed" from Ferrari, which had a short production run (40) of sports racing cars of the same name starting in 1962. Controversy over the name theft continues today, with many insisting that the Pontiac GTO did not fulfill the concept of a GTO, but Pontiac owners know otherwise!

When Pontiac built the GTO, they took their small, but comfortable, 4 seat, LeMans economy car and stuffed a high performance 389 cubic inch engine into it, built for their larger cars.  Then they upgraded the suspension, added a 4 speed transmission, triple carburetion, and they had a 4-person Grand Touring vehicle that spelled excitement.

The Pontiac GTO was never supposed to exist. GM, trying to be a good citizen, in late 1962 elected to get out of racing and otherwise promoting high speed or reckless driving. The mandate came down from the highest levels of General Motors management, that there was to be no high performance cars - nothing that implied racing or going fast was to be in the GM lineup.

Bunky Knudsen had been put into the GM position at Pontiac in 1956 to remove the old fashioned image Pontiac had as a manufacturer of conservative, basic, old people, transportation.  Sales were suffering and there were even plans to kill the division off entirely.

Pontiac needed something bold and performance seemed to be the answer.  From 1957 forward, Bunky began to surround himself with “car people”.  Pete Estes, John DeLorean and others were brought in and by 1960 they were seeing the results. In 1961 Pontiac captured the NASCAR Manufacturer’s Cup and repeated in 1962. Sales were up and young people were buying Pontiacs!  “Race on Sunday sell on Monday “ had become the cry of the industry. Performance had gotten out of hand.

Even given the edict from management on racing, Pontiac Engineering decided to put a 389 cubic inch motor into the Pontiac Tempest. Leading the effort was Pontiac chief engineer John Z. DeLorean, who had come to Pontiac as a young engineer from Packard.

The mandate contained a loophole however. Although new models required corporate approval, decisions regarding options only needed a nod at the division level. The Pontiac GTO, as introduced in the 1964 model year, was actually an option (number 382, costing $295.90) on the Tempest LeMans. Credit for convincing GMs top brass to let the GTO exist, which may have met the letter of the law but not the spirit, goes to Pontiac General Manager Elliot "Pete" Estes.

When presented to Frank Bridge, the Pontiac Sales Manager, he was unimpressed and did not believe the car would sell 5,000 units. Not only did they sell the 5,000, it was a sales success, the final tally for 1964 was 32,450.