GM gets another $2B in taxpayer loans, expected to scrap Pontiac

by JeffHuang | April 25, 2009 at 10:28 am

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General Motors received another $2 billion in emergency loan from the U.S. Treasury department bringing the total to $15.4 billion of the taxpayer's money.

It is expected that an announcement will be made to eliminate the Pontiac brand and concentrate on the "core brands" from Chevrolet, Cadillac, Buick, and GMC.
The plan for Pontiac is to have it as a niche brand as it only sold 40,887 cars and trucks in the first quarter with the Saturn, Hummer and Saab doing worst.

The automaker's CEO, Fritz Henderson, said last week that GM would need $4.6 billion during the second quarter — another $2.6 billion after the recent loan.

The automaker's financial arm, GMAC Financial Services, has received $5 billion in government aid, plus GM received a $1 billion loan to buy more equity in GMAC.