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NEW YORK (CNNMoney.com) -- General Motors announced plans to cut 23,000 U.S. jobs by 2011, drop its storied Pontiac brand and slash 40% of its dealer network in its latest bid to stay out of bankruptcy.
The company anticipates reducing its U.S. dealer count to 3,605 by the end of 2010, down from 6,246 in 2008. This is a further reduction of 500 dealers, and four years sooner, than in the February 17 plan. GM said its goal is to accomplish this reduction in an orderly, cost-effective and customer-focused way. The reduction will allow for a more competitive dealer network and higher sales effectiveness in all markets.
- Accelerated idling and closures of powertrain, stamping and assembly plants. The company plans to reduce the total number of facilities in the U.S. from 47 in 2008 to 34 by the end of 2010, and to 31 by 2012. This is one additional plant idling from the February 17 plan. Throughout the transition, the company will continue to implement its flexible global manufacturing strategy, which allows multiple body styles and architectures to be built in one plant.
- U.S. hourly employment levels will be reduced from about 61,000 in 2008 to 40,000 in 2010, and level off at about 38,000 starting in 2011. This further planned reduction is 7,000 to 8,000 more jobs than in the February 17 plan. GM also anticipates a further decline in salaried and executive employees.