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AHeneen
04-27-2009, 09:53 AM
GM to Discontinue Pontiac Brand, Announces Major Restructuring Plans

The President of General Motors announced Monday his plans to discontinue production of its celebrated Pontiac brand and cut 21,000 factory jobs by next year as part of a massive restructuring effort to get more government aid.

FOXNews.com (http://www.foxnews.com/politics/2009/04/27/gm-discontinue-pontiac-brand-announces-major-restructuring-plans/)
Monday, April 27, 2009

The President of General Motors announced his plans Monday to discontinue production of its celebrated Pontiac brand and cut 21,000 factory jobs by next year as part of a massive restructuring effort needed to secure more government aid.

GM CEO and President Fritz Henderson said the automaker will also offer 225 shares of common stock for every $1,000 in notes held by bondholders as part of a debt-for-equity swap.

"We just didn't have a strategy that we were satisfied with that could allow us to win with the Pontiac brand," Henderson said during a morning news conference Monday at GM headquarters in Detroit.

"We could not provide the marketing muscle behind the brand," said Henderson, who said the decision was "tough" because "the brand has a considerable heritage within our company."

[snip]

In premarket trading, GM shares rose 7 cents, or 4.1 percent, to $1.76.

GM said it would speed up six additional factory closings that were announced in February, although it did not identify them in its news release. Additional salaried jobs cuts also are coming, beyond the 3,400 in the U.S. slashed last week.

Including previously announced plant closures, the restructuring will leave GM with 34 factories at the end of next year, down from 47 at the end of 2008.

The company also said it plans to thin its dealership ranks by 42 percent from 2008 to 2010, cutting them from 6,246 to 3,605.

[snip]

The new plan lowers GM's break-even point in North America to an annual U.S. sales volume of 10 million vehicles, the company said. That's slightly more than the current sales rate, and most economists expect an uptick in the second half of the year.

[snip]

noonwitch
04-27-2009, 01:15 PM
More bad news for Michigan, I guess. GM has had too many lines carrying similar models for a long time, though, and they should have streamlined a long time ago, like when they got rid of Oldsmobile.


I have two big plants near my house-GM Powertrain and the Chrysler Stamping Plant. A lot of my neighbors work at one or the other.


Most of the jobs available in Michigan currently are either medical/nursing or in the service industry. The hospitals are paying big bucks for RNs.