Now that GM has announced it will completely eliminate its Pontiac brand, the automaker announced it will also cut jobs and dealers. GM said Monday that it will slash 23,000 U.S. jobs by 2011 and close 42 percent of its dealers by 2010, CNN Money reports.
GM’s new restructuring plan includes many more cuts than the automaker announced in its original restructuring plan in February. The new plan will essentially leave the U.S. Treasury Department owning a major stake in the company. Between the Treasury and the UAW union trust funds, they would own 89 percent of GM.
This new announcement will reportedly be followed by GM announcing more plant closures in the next few weeks. GM still has until May 31 to reach deals with the unions and creditors to cut expenses, or it will go into bankruptcy.
GM announced today it will cut 23,000 U.S. jobs and is expected to close more plants.
Last week, the Treasury Department gave GM an additional $2 billion in loans, to a total of $15.4 billion.
While it’s unfortunate that 23,000 GM employees will lose their jobs, if you are in the market for a GM vehicle, the deals will be exceptional, especially for Pontiac vehicles. Remember though that the resale value of Pontiacs will not hold up very well.