GM faces a deadline of June 1 to achieve the sweeping restructuring. Without the cost-cutting deals, GM said it expected to file for bankruptcy.
Following are details of the automaker's accelerated restructuring steps.
Debt Exchange
* GM common stock accrued interest in cash offered for $27 billion of outstanding public debt.
* Bondholders to own 10 percent of GM after exchange.
* Says at least 90 percent of outstanding notes will need to be tendered in the exchange offers in order to satisfy the U.S. Treasury condition.
* Exchange contingent on modifications to GM's debt owed to a retiree healthcare trust and U.S. Treasury debt conversion conditions resulting in at least $20 billion reduction in liabilities.
* Successful exchange to result in at least $44 billion reduction in total liabilities from bondholders, U.S. Treasury and the healthcare trust.
* Each of the exchange offers and consent solicitations will expire on May 26.
U.S. Treasury
* The U.S. Treasury to be issued at least 50 percent of GM's common stock in exchange for 50 percent of GM's outstanding U.S. Treasury debt at June 1, estimated at about $10.0 billion.
* The Treasury indicated willingness to provide GM an additional $11.6 billion of funding that the automaker forecasts it will require after May 1. It provided $15.4 billion of loans to keep GM afloat since the start of the year.
United Auto Workers
* At least 50 percent of GM's remaining financial obligations to a retiree healthcare fund, or about $10 billion, will be extinguished in exchange for GM common stock.
* Cash installments will be paid over a period of time toward the remaining amount of the obligations.
* GM common stock issued to the U.S Treasury and the UAW shall not exceed 89 percent of the company.
Brands, Dealers
* To focus on four core brands: Chevrolet, Cadillac, Buick and GMC. Pontiac will be phased out by the end of 2010.
* GM will offer a total of 34 nameplates in 2010, compared with 48 nameplates in 2008.
* Plans to unload Saab, Saturn, Hummer by the end of 2009 at the latest.
* Plans to reduce U.S. dealer count from 6,246 in 2008 to 3,605 by the end of 2010—a reduction of 42 percent. This represents a further reduction of 500 dealers and comes four years sooner than its earlier restructuring plan submitted in February.
Manufacturing, Employment
* The total number of assembly, powertrain and stamping plants in the United States will be reduced to 34 by the end of 2010, from 47 in 2008. This will be further reduced to 31 by the end of 2012.
* U.S. hourly positions will be reduced to 40,000 in 2010, from 61,000 in 2008. It will level off at about 38,000 starting in 2011.
* GM will cut U.S. hourly labor costs from $7.6 billion in 2008 to $5 billion in 2010.
* As a result of the actions, GM's structural costs in North America are projected to decline 25 percent to $23.3 billion in 2010, from $30.8 billion in 2008.
