New York, New York – General Motors may drop GMC and Pontiac as part of its cost-cutting strategy, according to Automotive News, in an effort to avoid bankruptcy protection. The automaker has until June 1 to restructure under the U.S. government’s requirement for additional funding.
The report said that Chevrolet, Cadillac and Buick appear to be safe. The automaker had previously said it would keep GMC and Pontiac, but sell or close Hummer, Saab and Saturn. A source for the report said that GMC has a better chance of surviving than Pontiac.
An investor group, working with various Saturn retailers, has approached the automaker about buying Saturn’s distribution network, but in a statement, GM said that it would not discuss the details or reveal any other interested parties.
The report said that three bidders have expressed interest in Hummer, none of whom are automakers, and that the current offers range from US$100 to $200 million. General Motors has received $13.4 billion in loans from the U.S. government since the beginning of 2009.