General Motors says it will cut 21,000 U.S. factory jobs by next year and phase out its storied Pontiac brand as part of a major restructuring effort needed to get more government aid.

General Motors Corp. is recalling about 277,000 vehicles because of a potential defect in the shift lever that could cause a vehicle to roll away.

Asked about Democratic congressional leaders’ plan to rush financial aid to the industry, Paulson cautioned that “any solution has got to be leading to long-term viability” for auto companies.