General Motors Corp. is readying plans to shed its Pontiac brand, shutter more factories and launch a bond exchange aimed at eliminating billions in debt, people familiar with the matter said Friday, according to a report in the Wall Street Journal.
The auto maker, facing a June 1 federal deadline to dramatically restructure or go bankrupt, is preparing early next week to detail the progress it has made on the stepped-up recovery plan demanded by the Obama administration. GM is expected to announce plans to eliminate or sell its poorly performing Pontiac brand, according to several people who have been briefed on the plan.
Previously, GM said it would keep one or two Pontiac models as a niche brand. But the Obama administration is pressuring GM to go further in downsizing its money-losing operations.
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