In a surprise revelation, General Motors (GM) says that it needs an
immediate infusion of loans to stay in business beyond the end of
December. In its reorganization plan presented yesterday to the Senate
Banking Committee, GM requested a total of $18 billion, with a promise
to reduce its total debt of $62 billion through renegotiation with
creditors, and cut expenses by paring down the number of main domestic
brands, phasing out or selling Saab, Saturn, Pontiac, and Hummer. Like
his counterparts at Ford Motor Company and Chrysler LLC, CEO Rick
Wagoner would accept an annual salary of $1 per year and eliminate all
bonuses. In addition, the GM plan says other executives would take pay
cuts of 20 to 30 percent and their bonuses would be eliminated as well.
The company would reduce the number of powertrain and stamping
facilities to 38 by the end of 2012, down from it current 64. Wagoner
will join Ford CEO Alan Mulally and Chrysler CEO Robert Nardelli in
Washington, D.C., this week for Congressional hearings on the proposed
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