GM gets another $2B in taxpayer loans, expected to scrap Pontiac

— -- General Motors got another $2 billion emergency loan, the U.S. Treasury department said Friday, and is expected to announce soon it will kill its slow-selling Pontiac brand as it scrambles to slice underperforming units.

Treasuary said it made the loan Wednesday, bringing taxpayers' investment in GM to $15.4 billion.

GM has until June 1 to complete restructuring plans that satisfy the government's auto task force.

GM has been saying that it would shrink to "core brands" — Chevrolet, Cadillac, Buick, GMC — and would make Pontiac a niche brand, possibly selling a single model. It hadn't suggested it would discontinue the brand.

The first quarter, Pontiac sold just 40,887 cars and trucks, according to industry tracker Autodata. Only GM's Saturn, Hummer and Saab brands did worse, and they've been up for sale for months.

Trade publication Automotive News reported Friday that GM will announce the death of Pontiac when it gives the Obama administration's auto task force its updated viability report in the coming week. Automotive News said the information was from anonymous soucres who know details of GM's planning.

GM and Pontiac wouldn't comment.

The automaker's CEO, Fritz Henderson, said last week that GM would need $4.6 billion during the second quarter — another $2.6 billion after the recent loan.

The automaker's financial arm, GMAC Financial Services, has received $5 billion in government aid, plus GM received a $1 billion loan to buy more equity in GMAC.

GM said in a statement that it appreciates the Obama administration's support "as we undertake the difficult but necessary actions to reinvent our company."

Meanwhile, with a government-imposed deadline for restructuring less than a week away, Chrysler and Treasury Department officials are still holding out hope they can reach deals to keep the automaker out of bankruptcy courts.

Chrysler is living on $4 billion in government loans and could get another $500 million in temporary financing. Chrysler must take on Fiat Group as a partner, cut debt and reduce labor costs by Thursday if it wants another $6 billion.