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GM to cut 21, 000 US factory jobs
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General Motors could soon be majority owned by the US federal government under a massive restructuring arrangement.

The plan laid out on Monday would cut 21 thousand US factory jobs by next year and phase out the famous Pontiac brand.

General Motors President and CEO Fritz Henderson addresses the companies viability plan in Detroit, Monday April 27, 2009. [Paul Sancya/CCTV/AP Photo]

General Motors President and CEO Fritz Henderson addresses the companies viability plan in Detroit, Monday April 27, 2009. [Paul Sancya/CCTV/AP Photo] 



Once the world's largest automakers, General Motors, is currently living on 15.4 billion US dollars in government loans.

It also faces a June 1st deadline to restructure and get more government money.

If the restructuring doesn't satisfy the government, the struggling company could go into bankruptcy protection.

Fritz Henderson, Chief Executive, General Motors, said, "The prospectus outlines a couple of things. One, that 89 percent of the shares of the company would be owned by a combination of the Treasury and the UAW VEBA. The second thing the prospectus does is it talks about as a condition, that the Treasury would equitize approximately 50 percent at least 50 percent of their pre-June 1 debt. So, about 10 billion dollars."

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