11:41 pm, April 27, 2009
GENERAL Motors is set to take the axe 21,000 jobs in America – and kill off the famous Pontiac brand.
The moves, reported by the BBC, are to help the manufacturer ravamp its business in time for the June 1 deadline imposed by the US Government.
GM needs to complete its ‘restructuring’ by then to avoid bankruptcy protection.
GM is in desperate trouble as its brands have been hit by falling sales across the world. GM owns Vauxhall, Chevrolet and Saab in the UK.
The BBC reports the carmaker has said it will shed Pontiac by the end of 2010 to focus on its core US marques – Chevrolet, Cadillax, Buick and GMC.
The car manufacturer is also hoping the US Government will let it swap half its current loans for a 50 per cent stake in the business.
GM’s boss Fritz Henderson said it was tough axing Pontiac – best known for the Trans Am and Firebird – after 83 years.
‘We didn’t think we had the resources to get this done from a product perspective,’ he told the BBC News website.
GM also said it will be cutting DEALERS in the US by a drastic 42 per cent – from 6,246 in 2008 to 3,605 by the end of 2010.
‘This reduction in US dealers will allow for a more competitive dealer network and higher sales effectiveness in all markets,’ said a GM statement.
GM has already cut 10,000 jobs in America this year. Whether these swathing cuts reach the UK remains to be seen.
