Pontiac Scapped!
Discussion
GM Have announced that the Pontiac line is to be scrapped:
" US auto giant General Motors announced plans to cut more jobs, scrap its Pontiac brand and slash 42% of its dealer network as part of a last-ditch restructuring effort.
Its US workforce will be slashed from about 61,000 in 2008 to 40,000 in 2010 and level off at about 38,000 in 2011.
The carmaker will also phase out its Pontiac line by the end of 2010 in a bid to save cost, instead focusing its resources on its four core brands, Chevrolet, Cadillac, Buick and GMC.
GM’s US dealer count will be reduced from 6,246 in 2008 to 3,605 by the end of 2010. This is a further reduction of 500 dealers, and four years sooner, than in its previous restructuring plan.
“We are taking tough but necessary actions that are critical to GM's long-term viability," said president and chief executive Fritz Henderson.
“Our responsibility is clear - to secure GM's future - and we intend to succeed. At the same time, we also understand the impact these actions will have on our employees, dealers, unions, suppliers, shareholders, bondholders, and communities, and we will do whatever we can to mitigate the effects on the extended GM team.”
GM also announced an offer to its bondholders to swap $27bn of its unsecured debt for stock in a bid to strengthen its balance sheet.
“A stronger balance sheet would free the company to invest in the products and technologies of the future,” Henderson said. “It will also help provide stability and security to our customers, our dealers, our employees, and our suppliers.”
" US auto giant General Motors announced plans to cut more jobs, scrap its Pontiac brand and slash 42% of its dealer network as part of a last-ditch restructuring effort.
Its US workforce will be slashed from about 61,000 in 2008 to 40,000 in 2010 and level off at about 38,000 in 2011.
The carmaker will also phase out its Pontiac line by the end of 2010 in a bid to save cost, instead focusing its resources on its four core brands, Chevrolet, Cadillac, Buick and GMC.
GM’s US dealer count will be reduced from 6,246 in 2008 to 3,605 by the end of 2010. This is a further reduction of 500 dealers, and four years sooner, than in its previous restructuring plan.
“We are taking tough but necessary actions that are critical to GM's long-term viability," said president and chief executive Fritz Henderson.
“Our responsibility is clear - to secure GM's future - and we intend to succeed. At the same time, we also understand the impact these actions will have on our employees, dealers, unions, suppliers, shareholders, bondholders, and communities, and we will do whatever we can to mitigate the effects on the extended GM team.”
GM also announced an offer to its bondholders to swap $27bn of its unsecured debt for stock in a bid to strengthen its balance sheet.
“A stronger balance sheet would free the company to invest in the products and technologies of the future,” Henderson said. “It will also help provide stability and security to our customers, our dealers, our employees, and our suppliers.”
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