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GM, Chrysler Request More Bailout Funds; Both to Cut Jobs and Models

General Motors (GM) and Chrysler have submitted their reorganization plans to the Treasury Department that request an additional $39 billion in federal bailout funds and promise massive job cuts and major corporate restructuring. General Motors says it needs loans of up to $30 billion total, including the $13.4 billion it has already received, and will cut 47,000 jobs around the globe and will close five more factories, bringing the total to 14 by 2012; the job cuts, which include 10,000 salaried and 37,000 blue-collar positions, amount to 19 percent of its global work force. GM will also reduce its brands to four: Chevrolet, Cadillac, GMC, and Buick, with a reduced presence for the Pontiac brand. It will attempt to sell or spin off the Saturn brand and will phase it out by 2011 if that attempt is unsuccessful; the Saab and Hummer brands are currently up for sale. Chrysler has asked for total loans of $9 billion, including the $4 billion it has already received, and will cut 3,000 more jobs. Chrysler will also stop producing three of its vehicle models: the PT Cruiser, Dodge Aspen, and Dodge Durango. At the same time, the United Auto Workers (UAW) says it has reached tentative agreement with both companies, as well as Ford Motor Company, on contract changes and concessions; those changes are a condition of the government bailout. Ford Motor Company did not request or accept federal bailout funds and was therefore not required to submit a restructuring plan.

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