GM To Congress: Give Us $18 Billion
Having delivered its plea to lawmakers for up to $18 billion in federal money to help keep it afloat, General Motors has released its plan to the public, which you can read in total here.
Among the long document's highlights:
-- The company wants up to $12 billion, which it says would keep it afloat through the end of 2009. Union concessions kick in on Jan. 1, 2010, which will take thousands of dollars out of the cost of producing each GM vehicle and save the company millions of dollars.
-- Of that $12 billion, GM wants $4 billion this month. In addition to the $12 billion, GM wants another $6 billion line of credit in case the market gets even worse.
-- The company hopes to being repaying the loans by 2011.
-- The company will focus on four brands:Chevrolet, Cadillac, Buick and GMC (these four brands account for 83 percent of GM sales). Pontiac will be a specialty brand with reduced product offerings, the company said.
-- Hummer is already up for sale and Saab will be sold, too.
-- GM will also give its Saturn franchise a look-over, to decide if it wants to keep it.
-- GM will renegotiate its debt.
-- Chief executive Rick Wagoner will reduce his annual salary to $1 per year and will get no bonuses for 2008 and 2009. The company will not pay dividends while using government money. Directors also will reduce their annual retainer to $1 per year in 2009.
-- GM plans to reduce its vehicle nameplates from 48 to 40 and its number of dealers from 6,450 to 4,700 by 2012.
-- Between 2009 and 2012, the company plans to spend $2.9 billion on alternative fuel and advanced propulsion technology.
-- Frank Ahrens
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