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GM needs up to $30 billion in aid to avoid failure
18 Feb 2009, 0500 hrs, REUTERS
DETROIT: General Motors Corp said on Tuesday it could need a total of up to $30 billion in US government aid -- more than doubling its original and would run out of cash as soon as March without new federal funding.
The request for additional aid from the top US automaker came in a restructuring plan GM submitted to US officials on Tuesday.
The GM restructuring plan of more than 100 pages was posted on the US Treasury Web site.
The request came on the same afternoon that No. 3 US automaker Chrysler requested an additional $5 billion from the current $4 billion in US government aid, saying it expected the brutal downturn in the US market to run another 3 years.
In response to signs of a prolonged slump in demand for new cars and trucks, the automaker also said it would step up cost-cutting, reducing its global workforce by 47,000 jobs this year and cutting five additional US plants by 2012.
In addition, GM said it would cut its US workforce by another 20,000 jobs by 2012 with most of those reductions coming earlier.
GM has been kept afloat since the start of the year with $13.4 billion in loans from the US Treasury. Its expanded aid request for up to $30 billion includes a $7.5 billion credit line in the event that the autos market remains depressed.
Critics of the bailout of GM and its smaller rival Chrysler LLC have urged the government to consider financing a court-supervised restructuring for the two ailing automakers in bankruptcy.
GM said its own analysis of the costs and risks of a bankruptcy filing would require more than $100 billion in financing that could have to be provided by the US government.
GM requested an unprecedented US government bailout in December and had pegged its funding need then at up to $18 billion.
18 Feb 2009, 0500 hrs, REUTERS
DETROIT: General Motors Corp said on Tuesday it could need a total of up to $30 billion in US government aid -- more than doubling its original and would run out of cash as soon as March without new federal funding.
The request for additional aid from the top US automaker came in a restructuring plan GM submitted to US officials on Tuesday.
The GM restructuring plan of more than 100 pages was posted on the US Treasury Web site.
The request came on the same afternoon that No. 3 US automaker Chrysler requested an additional $5 billion from the current $4 billion in US government aid, saying it expected the brutal downturn in the US market to run another 3 years.
In response to signs of a prolonged slump in demand for new cars and trucks, the automaker also said it would step up cost-cutting, reducing its global workforce by 47,000 jobs this year and cutting five additional US plants by 2012.
In addition, GM said it would cut its US workforce by another 20,000 jobs by 2012 with most of those reductions coming earlier.
GM has been kept afloat since the start of the year with $13.4 billion in loans from the US Treasury. Its expanded aid request for up to $30 billion includes a $7.5 billion credit line in the event that the autos market remains depressed.
Critics of the bailout of GM and its smaller rival Chrysler LLC have urged the government to consider financing a court-supervised restructuring for the two ailing automakers in bankruptcy.
GM said its own analysis of the costs and risks of a bankruptcy filing would require more than $100 billion in financing that could have to be provided by the US government.
GM requested an unprecedented US government bailout in December and had pegged its funding need then at up to $18 billion.
