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Googled and found this on Corvette Valley forum:

A bad anagram of GTO=GOT ie... goat. One of those 60's things. THe first GTO debuted in 64, they killed it in 74. Brought it back in 04. The styling has really polarized the Pontiac crowd but the car runs and handles incredibly well.
 

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Ok; last post on this subject; everyone can google for themselves, but this was very interesting:

When Is a Goat Not a Goat?

With The Great One theme on the screen and in print, the GTO for 1967 took on a new air of sophistication. Pontiac positioned the GTO to still appeal to the street enthusiasts, but older buyers, professionals and women were targeted as potential customers. One theme Wangers was never able to sell to GM management was the name that still endears itself to the GTO—The Goat. Wangers put together an ad showing a young man standing in his driveway, a pail under his arm, posing with his freshly washed bright red GTO. The ad was titled, "A Boy and His Goat," and by submitting it to the corpo-ration for approval, Wangers, who always had one ear to the pavement, was to discover just how out of touch GM management was with the language and the culture of high-performance enthusiasts.

"At that time, they (GM) had already initiated a corporate committee for all of the divisions to submit their advertising and get approval on everything before we could run it," Wangers recalled. "They were sort of policing the division to make sure we didn't break any of their policies."

Wangers felt the "Boy and His Goat" ad met the criteria. "The ad suggested that everyone ought to have a GTO in order to complete their life cycle," Wangers said. "The ad was very much in line with the pride of ownership image. We felt we had been very successful in capturing that and thought this was an ad that set itself completely within the framework of what the corporation wanted and did for us what we wanted."

The corporate committee rejected the ad based on its perception of what the word goat defined. "The guys downtown told us a goat is the butt of a joke or the butt end of a mistake," Wangers commented. "And they said they certainly understood it enough to know they wouldn't approve it."

Wangers put together a study that quoted enthusiasts in the field, and assembled magazine articles that referenced the GTO as The Goat' and presented it to the committee, explaining, "You've got to give us the benefit of the doubt here, that we know what we're doing. The word Goat is an accepted nickname of the GTO in the field. The people who are living with this car and love and respect it have assumed that the word GTO stands for Goat. Allow us the professionalism of knowing our market. That's why we're successful."

The committee refused the appeal, responding that GM was not going to allow Pontiac to demean the name of their car by referring to it as a goat. Pontiac no longer had the freedom to image and market its products without corporate approval of all advertising. It was the end of a grand era of Tigers, and Wide Tracking would never be the same again.
 

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I wasn't alive yet back then, but I think that would've made a great ad.
 

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I can’t believe how many people ask y do you call it a Goat. I’m talking about car guys that don’t seem that young to me man really makes me feel old.
 
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