General Motors Corp.'s (GM) updated Viability Plan calls for a 28% reduction in the company's total number of U.S. assembly, powertrain and stamping plants from now until the end of 2010.
GM also has pledged to:
* reduce its number of nameplates to 34 in 2010, down from 48 total nameplates last year. This will include the elimination of the firm's Pontiac brand. "GM in the U.S. will focus its resouces on four core brands: Chevrolet, Cadillac, Buick and GMC," say company officials. In addition, the plan "moves up the resolution of Saab, Saturn and Hummer to the end of 2009, at the latest."
* reduce its number of dealers in the U.S. from more than 6,000 to 3,605 by the end of 2010, a 42% decrease. GM will release more details about this component of the plan in May.
* eliminate hourly jobs by 34% for a total of 40,000 in 2010. "GM also anticipates a further decline in salaried and executive employment."
"Another key element of GM's restructuring will be taking the necessary actions to strengthen its balance sheet," say company officials.
Yesterday, April 27, the company launched a bond exchange offer for $27 million of its unsecured public debt. The offer is "conditioned on the converting to equity of at least 50% of GM's outstanding U.S. Treasury debt at June 1, 2009."
"The Viablity Plan reflects the direction of President Obama and the U.S. Treasury that GM should go further and faster on our restructuring," says GM CEO and President Fritz Henderson.
