General Motors has filed its amended restructuring plan and it contains much more aggressive cuts than those rejected by the Treasury Department in the previous plan. As expected, Pontiac is being phased out and so are half the GM dealerships in the nation and thousands more workers. Automotive News reports.
The cuts in brands:
The automaker will continue to invest in four core U.S. brands: Chevrolet, Cadillac, Buick and GMC. In its earlier strategy, Pontiac was to have continued as a niche marque.
The company also said that it is accelerating plans to spin off, sell or close Hummer, Saturn and Saab. Their futures will be resolved this year. In the previous, Feb. 17 restructuring plan, rejected by the Obama administration’s auto task force, GM planned to determine the brands’ fates before 2011.
And more plant closings and job losses:
GM also plans to shut more U.S. factories than proposed earlier. GM says it will have 34 powertrain, stamping and assembly plants by the end of next year, down from 37 in the February plan.
The number of U.S. hourly workers will also be significantly reduced. GM says it will have 40,000 hourly workers in 2010, down from 47,000 in the Feb. 17 plan and 61,000 in 2008.
It remains to be seen if the Treasury Department’s auto taskforce will see these cuts as enough to make the company viable or whether it will force the automaker into bankruptcy.