General Motors CEO Fritz Henderson sat before reporters admitting what the automaker had proposed back in February had to go farther than before and at a much faster pace. The updated plan calls for the elimination of the Hummer, Saturn and Saab brands by the end of this year, and after 82 years in business, the phase-out of Pontiac by the end of 2010.
Fritz Henderson, General Motors CEO said, "It's a difficult period. It's a challenging period. It's a very painful period for our dealers, our suppliers and our people. I know I speak personally in this regard, none of us like the situation we're in, but it's our job to do something about it."
The new plan calls for the loss of 21,000 hourly positions by the end of next year, roughly 7000 more than originally predicted, as well as, the closing of more than 2600 dealerships across the country. On top of that, GM initiated a bond sale on Monday hoping to raise $27-billion through the swapping of debt for shares in the company.
Henderson admits if the sale does not succeed by June 1, the automaker will likely end up in bankruptcy.
