When the big three went to Capitol Hill looking for a $25 billion dollar government bailout, Congress had a clear message "No plan, no cash". They were given until December 2 to come up with a comprehensive plan of action and if reports out of Detroit are correct GM's plan could call for drastic action.
Sources familiar with the plan say the company is studying the elimination or sale of Pontiac, Saab and Saturn. Selling or eliminating the brands would help cash-strapped GM cut production costs and reduce product overlap. The plan also includes measures to cut debt and reduce costs for both current and retired union workers.
The oldest of the brands up for review is Pontiac which has an 82 year history as a General Motors brand, in the past year the brand's sales were down 21 percent. The recent dealership tie-up of GMC-Buick-Pontiac could also work against the brand as it would still leave dealers with products to sell if the brand were to be killed off. An elimination of Saturn seems less likely as the brand features a full portfolio of fresh products and strong ties to GM's Opel division.
Company officials are currently scheduled to begin reviewing the proposal after the Thanksgiving holiday and then they will present their plans to Congress on December 5.
