General Motors (GM) Job Cuts and Pontiac Brand
Filed under: Autos
It was a sad day to learn that the Pontiac brand is now dead, and there is also news that more car factories and job cuts are about to come. This is all part of a restructuring plan by General Motors (GM), which the automaker hopes will help fight bankruptcy fears.
GM have been feeling the pressure for some time now, and today will see them make an offer to its bondholders to swap its debt for company stock. Currently GM owes $28 billion to large and small bondholders, under Securities and Exchange Commission rules; General Motors has to disclose its operational plans when it makes an exchange offer.
Fox News reports that two people have been briefed on this GM plan and has confirmed that this deal means that we will see an end to Trans Am sports car brand Pontiac. The first Pontiac car was launched 83 years ago. In the first three years more than half a million Pontiac vehicles were sold, the brand popularity grew quickly after that.
GM had hoped to keep the Pontiac brand, but they had to buckle under government pressure to consolidate its eight brands.
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