GM to Cut 21,000 Factory Jobs, End Pontiac Brand

General Motors Corp. could be majority owned by the federal government under a restructuring plan that will cut 21,000 U.S. factory jobs by next year and phase out the company’s Pontiac line, the Associated Press reported Monday.

The plan includes an offer to swap roughly $27 billion in debt for GM stock, would leave current shareholders holding just 1% of the century-old company, AP reported.

In addition, GM is offering stock to the United Auto Workers for at least 50% of the $20 billion the company must pay into a union-run trust that will take over retiree health care expenses starting next year, AP said.

GM also said it would speed up six additional factory closings that were announced in February, without identifying the locations, AP reported.

The company said it would phase the Pontiac brand no later than next year, and the futures of its Hummer, Saturn and Saab brands will be resolved by the end of this year by either selling them or phasing them out, AP reported.