Most people knew struggling automakers General Motors Corp. and Chrysler LLC on Feb. 17 would ask the Treasury for money in addition to the $17.4 billion of government funding they already received. Suggesting up to another $22 billion, however, was surprising. Below is an outline of just what GM wants and plans on doing over the coming months, including cutting thousands more jobs and selling or eliminating some brands.
So far, GM has received $13.4 billion and:
- will cut 10,000 salaried and 37,000 blue-collar positions;
- will cut four brands, focusing only on Chevrolet, Cadillac, Buick and GMC;
- will make a decision to sell or phase out the Hummer brand by March 31;
- offered the global Saab business for sale,
- is requesting Swedish gov't support prior to any sale,
- also, the Saab Automobile AB unit could file for reorganization as early as this month;
- if a spinoff or sale does not occur, GM plans to phase out the Saturn brand;
- GM's dealer count is projected to be further reduced, from 6,246 in 2008 to 4,100 by 2014;
- is building a U.S. factory to make build lithium-ion battery packs,
- and will make more than 60% of its fleet alternative-fuel capable;
- will close an additional 14 manufacturing facilities by 2012, five more than were included in the Dec. 2 plan;
- made a tentative agreement with the United Auto Workers union and GM bondholders;
- may need up to another $16.6 billion from the Treasury if markets continue to deteriorate,
- expects to begin repayment of federal support in 2012; and
- says it might need more financial support in 2013 and 2014 if GM has to make contributions to U.S. pension funds;
In
a summation of its plan, GM said it is also requesting funding support from the governments of Canada, Germany, the U.K., Sweden and Thailand.
The next key date in GM's run to avoid bankruptcy is March 31, when it will submit its second progress report to the U.S. Treasury. That report "will be the basis for the Task Force -- headed by Timothy Geithner -- to issue a 'Plan Completion Certificate' to Congress, which confirms GM's long-term viability." -
Baz HiralalGo to the story GM announcement
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Juergen Lasowski
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haha they suck at buuisness crap but there trucks are awsome!