GM considers brand cull

General Motors is understood to be considering axing Saab in a bid to cut costs and win $12bn (£7.8bn) in Government loans. It is also looking to drop Saturn, Pontiac and Hummer.

The US carmaker has already warned it could run out of money before the end of the year and is cutting costs wherever possible to avoid filing for bankruptcy.

A GM spokesman says the company could not comment on speculation.

GM is currently under pressure to come up with a detailed survival plan, alongside Ford and Chrysler. The companies have been set a deadline of December 2 to show Congress how they plan to repay federal aid.

Congress has scheduled a December 5 hearing on the $25bn (£16bn) auto-industry rescue and may vote the week of December 8.

The speculation comes just days after GM’s decision to end its nine-year sponsorship deal with golfer Tiger Woods a year early.

GM has also delayed incentive payments to dealers, extended holiday shutdowns and announced plans to cut about 3,600 jobs early next year as production slows.

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