General Motors to cut jobs

27/04/09 19:14 CET

corporate

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US car firm General Motors is to cut more than 20,000 jobs, over one third of its total workforce.

In an announcement in Detroit is said it will also close 13 plants and cut its dealer network. This is to comply with the Obama government’s June 1st deadline for a quicker and deeper restructuring. GM has to prove it is viable, in order to keep its federal loans and avoid bankruptcy. The Pontiac brand is to be phased out, says CEO Fritz Henderson. “Our conclusion after a fair amount of work was that we did not have a strategy that we were satisfied with, that could allow us to win with the Pontiac brand. We did not think we have the resources necessary to get this done from a product perspective, nor did we think we could really provide the marketing muscle behind the brand.” GM plans to focus on four core brands in the US, Chevrolet, Cadillac, Buick and GMC. It is currently seeking an agreement with the United Auto Workers’ Union over its retiree medical fundMore about: Car industry, USA

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Spain's Bankia seeks 19 billion euros in state aid

Spain’s Bankia group asked the government for a 19 billion euro bailout on Friday. The lender was nationalised earlier this month. Madrid now owns a 45 per cent stake. Bankia is struggling to plug a hole in its…