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GM Seeks $18B in Aid, Needs $4B Immediately

By Harry Kimball,  Newser Staff

Posted Dec 2, 2008 4:02 PM CST
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(Newser) – General Motors says it needs an immediate $4 billion loan from the government to get through the month, the Detroit Free Press reports. “Absent support, we can’t continue to operate,” the carmaker’s COO told Congress. GM is requesting a total of $18 billion in federal aid—$12 billion in loans and a $6 billion emergency line of credit. But “the first $4 billion is crucial,” Fritz Henderson said.

In return, the company offered to cut 30,000 jobs, close nine plants, reopen talks with the UAW, and possibly eliminate or sell its Saturn, Saab, Hummer, and Pontiac brands. Chrysler said it, too, faced insolvency this month unless it got $7 billion, while Ford sought a $9 billion in a line of credit  it could tap in an emergency. Withholding aid would have "long-term consequences to the US economy," GM wrote in its report to Congress.

The Big Three on their first trip to Washington, in November.
The Big Three on their first trip to Washington, in November.   (AP Photo)
An unsold Chevy truck.
An unsold Chevy truck.   (AP Photo)
General Motors President and Chief Operating Officer Fritz Henderson.
General Motors President and Chief Operating Officer Fritz Henderson.   (AP Photo)
GM COO Fritz Henderson.
GM COO Fritz Henderson.   (AP Photo)
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GM's full statement
Wall Street Journal

Carmarkers make their pitches
New York Times

US • Money

 
Congress • General Motors • credit crisis • auto industry • bailout • economic downturn • Fritz Henderson

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