General Motors Corp said on Tuesday it could need a total of up to $30 billion in U.S. government aid – more than doubling its original aid – and would run out of cash as soon as March without new federal funding.
The request for additional aid from the top U.S. automaker came in a restructuring plan GM submitted to U.S. officials on Tuesday.
The request came on the same afternoon that No. 3 U.S. automaker Chrysler requested an additional $5 billion from the current $4 billion in U.S. government aid, saying it expected the brutal downturn in the U.S. market to run another three years.
GM also said it had not reached deals with bondholders and its major union to reduce some $47 billion in debt but would work to reach those agreements by the end of March.
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 U.S. plants by 2012.
In addition, GM said it would cut its U.S. 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 U.S. 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 U.S. government.
(Source: Yahoo Business News)
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6 Responses
Maybe their CEO’s should return some money to the company…, Their bailout means our tax…
isha kshaira needs half a million!! why them and not me, after all, it’s my money, if they’re giving away my money, shouldn’t i be the one to get it first?????
Keep the presses rolling! The printers will not be out of work.Print money for the tuition payments for yeshivos also. Soon they’ll be printing Obama’s picture on all the money and then you’ll have some change.
Sorry isha… RY’S come first! I’m waiting for my own bailout.
rosh yeshiva: of course the husband of the isha kshaira is a rosh yeshiva. so i still come first
#3 – “presses rolling”
What do you think this is? The 20th century?
No one actually “prints” the money (except maybe Zimbabwe).
The way it works is the Congress appropriates the money, without regard to what it happens to have at hand. Then the Secretary of Treasury writes a check or EFT’s payments. And to keep the check from bouncing, Ben Bernanke, a nice Jewish boy (well, he’s nice and has Jewish background) presses the “cheat” button at the Federal Reserve, and the money appears in the government account.
P.S. Considering Obama is continuing Bush’s economic policies, both being proper members of the establishment, one shouldn’t blame him any more than the rest of the establishment. This depression clearly required bipartisan effort. One party or faction couldn’t have dug a hole this deep all by itself, even if it tried.