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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

The Ticker is Twittering!

By Frank Ahrens  |  December 2, 2008; 5:04 PM ET
Categories:  The Ticker  | Tags: GM, automakers  
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Comments

You report that "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." So what if the Congress bailed out the Big 3 by immediately enrolling all their employees (active and retired) in Medicare and paying half the costs of Medi-gap insurance? Wouldn't that take care of a large part of GM's current cash flow crisis? Call this a pilot test of one strategy for providing universal health care to all citizens. It's time we relieved domestic employers of any responsibility for providing the health care safety net for our nation -- we might as well start with the auto industry.

Posted by: MichaelMiller5 | December 2, 2008 5:18 PM | Report abuse

MichaelMiller5:
Damn buddy, high five! What planet did you drop in off recently?

Seriously, great comment and why not?

Let's start with the auto industry and build forward.

Posted by: timbrusky1 | December 2, 2008 6:34 PM | Report abuse

Let GM go bust and let Tesla Motors buy up what ever bits it wants and employ any staff who make it through selection.

That way America will have at least one Auto business with a future.

http://www.teslamotors.com/

Tesla's first car is faster and cheaper than its Porsche and Ferari rivals.

Now they are making a Luxury Sedan and they have plans to cover all sections of the US market in 5 years.

Tesla knows how to make the cars that people want and it is not wedded to the ancient 19th Century petrol engine technology that has killed the US car industry.

Posted by: walker1 | December 2, 2008 10:13 PM | Report abuse

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