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GM Needs a Hand From Unions, Lenders

Automaker scrambles to retrench ahead of Congress' deadline

By Jim O'Neill, Newser User

Posted Nov 24, 2008 9:43 AM CST

(Newser) – General Motors is revving up its efforts to prove to Congress it can survive if it receives a multibillion-dollar federal loan, reports Bloomberg. The automaker is asking unions to ease work rules, attempting to reduce its debt load, and considering cutting brands from its lineup as it tries to stretch its remaining cash. The company has a week to present a plan to lawmakers.

The specter of the B-word—bankruptcy—haunts the company, which is carrying $43 billion in debt and burns through at least $11 billion per month in operating costs. "A financial restructuring, along with government loans, is an alternative to bankruptcy," says an industry analyst. "It doesn’t fix the economic environment, though, and it’s the economic conditions that are causing their cash burn."

Senate Majority Harry Reid of Nev., center, flanked House Speaker Nancy Pelosi of Calif., left, and Sen. Patty Murray, D-Wash., gestures during a news conference on Capitol Hill, Thursday,Nov. 20. (AP Photo/Gerald Herbert)

General Motors CEO Richard Wagoner testifies on Capitol Hill in Washington, Wednesday, Nov. 19, 2008, before a House Financial Services Committee hearing on the automotive industry bailout. (AP Photo/Gerald Herbert)

In this Oct. 12, 2008 file photo, the GM logo hangs over an unsold 2009 Acadia sports-utility vehicle on the lot at a GMC Truck dealership in the south Denver suburb of Littleton, Colo. (AP Photo/David Zalubowski, File)

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GM Needs a Hand From Unions, Lenders

Automaker scrambles to retrench ahead of Congress' deadline

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GM Needs a Hand From Unions, Lenders

Automaker scrambles to retrench ahead of Congress' deadline

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OTHER STORIES ON OUR RADAR

Nancy Pelosi • General Motors • auto industry • Rick Wagoner • financial crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Calls Build for GM's Wagoner to 'Move On'

Dodd, Obama hint a change at the top is in order to get bailout

GM, Chrysler Mull 'Packaged' Bankruptcy to Get Bailout

Execs say that's 'way down the list,' but Detroit desperate for federal bailout

Big 3 CEOs Head Back to DC—This Time by Car

CEOs of America's automakers will renew plea for bailout today

Scrambling, GM Offers Equity for Debt

Wagoner needs strategy to win federal aid by Tuesday

GM Doesn't Want You Tracking Its Private Jet

Automaker asks feds to block public tracking of plane leased for execs

About Us

Site

Newser By Users

Community

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Tools

More News

What is Newser?