I think this news has worsened. I thought I heard late last week that GM was totally ceasing production of the Pontiac line, effective this coming Monday, April 27th, when the last Pontiac will roll off of the assembly line.
General Motors Corp. has announced plans to further reduce its work force, plant operations and dealership network as the carmaker seeks to remain viable.
Also, the automaker will now shutter the Pontiac brand and emphasize four core brands — Chevrolet, Cadillac, Buick and GMC.
Details were outlined Monday as GM also filed a plan to exchange $27.2 billion of bonds with the U.S. Securities and Exchange Commission. GM is facing a June 1 deadline by the Obama administration or the company may face bankruptcy. Already GM has received $15.4 billion from the federal government while trying to remain solvent.
The added cuts call for reducing the total number of assembly, powertrain, and stamping plants in the U.S. from 47 in 2008 to 34 by the end of 2010 — a reduction of 28 percent, and down to 31 by 2012.
“We don’t know what impact, if any, this might have on the Tonawanda plant,” said spokeswoman Nina Price. “That’s something we’re trying to determine right now.”
The company’s hourly employment roll would drop by another 34 percent, or about 21,000 workers, to 40,000. GM assumes a reduction of U.S. hourly labor costs from $7.6 billion in 2008 to $5 billion in 2010. GM said it will continue to work with the United Auto Workers to accomplish those cuts through modifications in the collective bargaining agreement.
GM plans to slash its U.S. dealer count from 6,246 in 2008 to 3,605 by the end of 2010, a reduction of 42 percent. That is a further cut of 500 dealers, and four years sooner, than previously announced in February.