Monday, April 27, 2009

Bye Bye (Fire)Birdie!

GM To Cut Pontiac Brand
General Motors Corp. (GM) said Monday it will cut 21,000 hourly jobs and eliminate its Pontiac brand by the end of next year as part of a stepped-up restructuring plan.

The auto maker will also start an exchange offer for $27 billion of its unsecured public notes as the company looks to become viable, saying a successful exchange offer would allow it to stay out of bankruptcy court.

GM, which is surviving on federal loans, is racing to restructure by June 1 under close watch of the Obama administration.

"The objective here is not to just survive but to come up with an operating plan that will allow us to win," Chief Executive Fritz Henderson said Monday.

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