GM To Eliminate Pontiac, Give Government 50% Stake [Auto Bailout] from Consumerist

GM released a new plan to avoid bankruptcy today, and the cuts are deep. The U.S. Treasury would own at least 50% of the company and the failing Pontiac brand would be completely eliminated.

GM will also eliminate 21,000 jobs.

From the Washington Post:

By June 1, the Detroit-based automaker, which has already received $15.4 billion in federal loans, must gain significant concessions from stakeholders to continue to receive aid.

Under the outlines announced yesterday, the federal government would take an equity stake of at least 50 percent, the United Auto Workers would take as much as 39 percent, the company's bondholders would get 10 percent and the existing shareholders 1 percent

In addition, the company said that they do not expect to make Hummers, Saabs or Saturns after this year.

GM to Cut 21,000 Jobs, Eliminate Pontiac [WaPo]