This morning, GM announced they were cutting 21,000 jobs and getting rid of Pontiac. Plans are in place to close more factories as the automaker fights to avoid bankruptcy.
GM has been surviving on on $15.4 billion in government loans and revealed that it envisions receiving an additional $11.6 billion. But if GM’s restructuring plan can’t satisfy the government by June 1, the struggling company could go into bankruptcy protection. The company also made an offer to bondholders to exchange of $27.2 billion of bonds for common stock.
The death of Pontiac, as well as GM’s decision to cease production on Saturn and Hummer brand vehicles after the 2009 model year, leaves GM with four core brands: Chevrolet, Buick, GMC and Cadillac.