Local car dealerships say they'll survive the end of Pontiac
(WKTV) - A massive restructuring plan for General Motors was laid out Monday which will result in the elimination of 21,000 U.S. factory jobs by next year and a phase-out of the Pontiac brand.
The plan, which includes an offer to swap roughly $27 billion in bond debt for GM stock, would leave current shareholders holding just 1 percent of the century-old company. In addition, GM is offering the UAW stock for at least 50 percent of the $20 billion the company must pay into a union run trust that will take over retiree health care expenses starting next year. The company said it would phase out its storied Pontiac brand no later than next year, and the futures of Hummer, Saturn and Saab will be resolved by the end of this year by either selling them or phasing them out. President Barack Obama's administration said in a statement that the bond exchange filing is an important step in GM's restructuring but the administration has not made a final decision about taking stock for part of its loans. The announcement sent shockwaves through Pontiac dealerships across the country, including here in Central New York. We spoke with Lee Pontiac, Buick, GMC in Boonville about the decision to phase out the Pontiac name. Randy Lee, one of the owners, is sad to see the brand go, but says it won't make or break his business. His dad started selling Pontiac vehicles in 1953. But at this point, Pontiac only makes up about 20% of his sales. Carbone has been a GM dealer for 41 years. A spokesperson for the company says that the Carbone family is trusting that GM is making the right decision. Carbone carries a number of brands and says they aren't worried about the loss of Pontiac. |
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