GM to Slash 47,000 Jobs, Kill Saturn Brand, End Pontiac Division
General Motors has announced a restructuring plan "to survive the recession" that could cut as many as "47,000 jobs around the world and close five more U.S. factories".
The battered automaker is already surviving on $13.4 billion in federal loans and said in a plan submitted to the U.S. Treasury Department that it would seek an additional $16.6 billion if economic conditions worsen, but it could achieve profitability in two years and fully repay its loans by 2017.
The U.S. company presented its turnaround plan to the Obama administration as it worked to win concessions from the United Auto Workers union and bondholders to dramatically resize the company.
No new Saturn vehicles will be made and the brand will officially be gone by 2011. The Pontiac division is also going to be folded although it is not immediately clear what will happen to future Pontiac products.
GM's viability plan set to be released at 5:00PM will kill the Saturn brand by 2011. Pontiac will also go away as a division. But the nameplate will sorta live on.
So basically, what we've heard is the brand meant to compete against the foreign brands is dead — Saturn goes away in 2011. There will be no new products for Saturn and Saturn dealers are getting a video from Mark LeNeve at 5:00 PM to inform them. We're thinking Mark should cut a check to send with it. As far as Pontiac, it goes away as a division.