Wednesday, February 18, 2009

GM, Chrysler now say they need billions more


What should we do? Bailout or bankrupt?
clipped from www.freep.com

General Motors Corp. and Chrysler LLC summoned the prospect Tuesday of their collapse unless they get $7 billion in federal aid within six weeks -- part of a dramatic plea for a total of up to $39 billion to survive the worst economic crisis in the history of Detroit's signature industry.

The plan calls for closing five more plants in the United States than previously announced, bringing total plant closures to 14 over the next three years, and eliminating 47,000 jobs worldwide this year and 20,000 in the United States by 2012. Chrysler said it would cut 3,000 jobs and eliminate three models from its lineup.

GM "remains convinced bankruptcy would be protracted with a significant possibility that exit would not be achieved," the company said.

The UAW said it had not agreed to changes in retiree health-care trust funds at all automakers, but Chrysler said it had reached a tentative pact depending on sacrifices by bondholders.