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In 1999, the Grand Am was redesigned again and entered its fifth generation, with its only identical sibling being the Oldsmobile Alero. It has been reported that the very first 1999 Grand Am rolled off the assembly line on June 15, 1998. However, it's more likely that this occurred even earlier, perhaps April or May, as 1999 Grand Ams had been spotted on lots as early as late May 1998. The standard engine remained the DOHC 2.4 L I4 with the 3.4 L V6 optional. The 2.2 L Ecotec I4 replaced the 2.4 L as the standard engine in 2002. In 2003, the design was further refined by removing the ribbed body cladding for a "cleaner" appearance.

This generation of the Grand Am was sold in five variants, the SE, SE1, SE2, GT, and GT1. Each variant added various features such as power windows and locks, dual rear exhausts, a rear spoiler, a more powerful engine (3.4 L V6) than the Ecotec, or alloy wheels. Safety features as dual front airbags and anti-lock brakes were now standard throughout the line, as well as traction control (ETS). However ABS and ETS (Traction Control) were optional on the 2003-2005 Grand Am SE, but standard on SE1, SE2, GT and GT1 models. The Grand Am enjoyed success as a compact car filling a niche as a comfortable, affordable, reliable, yet sporty car.

In the American market, when the Sunfire sedan was dropped for 2003, the Grand Am sedan was the only compact sedan in Pontiac's lineup.

Despite its success, the Grand Am finally came to an end. The last Grand Am sedan rolled off the assembly line on December 10, 2004. The coupé will most likely be dropped at the end of 2006, with the entire Grand Am line being replaced by the Pontiac G6, which is based on the GM Epsilon platform. It is interesting to note that the Grand Am was Pontiac's best-selling car before being replaced.

In 2006, the Grand Am continues on in fleet sales while the G6 has replaced it in the Pontiac lineup.

The last Grand Am rolled off the Lansing, Michigan assembly line on May 6, 2005, because GM had reportedly closed the plant.

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