According to a report by Bloomberg, GM is considering dropping Pontiac, Saab and Saturn as a way to cut costs and to increase the chance of the Detroit Big 3 getting $25 billion in federal loans. Bloomberg cited anonymous sources that said GM is considering eliminating or selling the brands to help it avoid running out of money - which it recently said could happen as soon as the second-quarter of 2009.
No GM spokesperson has commented on the report as of yet but it is widely believed that the move could be included in the restructuring plan GM will submit to Congress on Tuesday. Congress had asked Mulally, Wagoner and Nardelli to come up with a plan that would display that the company’s would become profitable enough to repay the $25 billion in federal loans.
GM has already announced that it is selling its Hummer brand. We’d love to hear what you think - so let us know what you think of this report and whether GM should sell the brands listed.
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