GM Wants Another $16 Billion

by The Associated Press

Published: Tue, February 17, 2009 - 5:21 pm CST

DETROIT (AP) - General Motors Corp.'s restructuring proposal
says the company may need up to $30 billion in government loans as
it implements a survival plan that includes cutting 47,000 jobs and
closing five more U.S. factories.
GM submitted the dire plan to the Treasury Department on Tuesday
to explain how the Detroit automaker will become viable and repay
its loans. It says GM will try to borrow up to $16.6 billion more
from the government, on top of the $13.4 billion it has already
received.
With the restructuring, GM expects to start repaying the
government in 2012 and fully pay off the loans by 2017.
GM says it has considered the option of bankruptcy, but the only
credit available to finance a reorganization would be from the
government, and it could cost as much as $100 billion.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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BamaBob Says:

Wed, Feb 18, 2009 at 8:51 am

Chapter 11 would allow them to reorganize their debts with government protection and it would also allow them to renegotiate union contracts. It is the only way they can lean down and become a viable industry.

Of course, none of the car makers are going to turn a profit until the overall economy stabilizes and people are not afraid to make long-term purchases. Kind of hard to get in that frame of mind, when the president tells the world every day that we are doomed.

cmb1 Says:

Wed, Feb 18, 2009 at 8:42 am

NO! Cut salaries and price of vehicles an they can make money, if the democrats give them more money it will be a big mistake because they will come back for more…

BamaBob Says:

Wed, Feb 18, 2009 at 8:15 am

Sounds like a bottomless pit to me. They should have gone into Chapter 11 in the first place like all the smart money people said. They still will do that in the end, but the taxpayers will be out billions and billions.

Fiat says they will buy Chrysler after our government pumps a few more billion into the places. So basically we will be giving Italy the money. Kinda, sorta, crazy!

rolltide33 Says:

Wed, Feb 18, 2009 at 7:52 am

I hope they recall the loans from December and cut them off.

butterflykisser101 Says:

Wed, Feb 18, 2009 at 7:16 am

Just say No!!

rmseek1234 Says:

Tue, Feb 17, 2009 at 7:30 pm

Well lets rush to give them the money too! After all, that’s what these Democrats are good out-is handouts, and rushing so the sky doesn’t fall, and piling us deeper in debt. Oh, and not reading their pork laden plans….

Great1 Says:

Tue, Feb 17, 2009 at 6:40 pm

Is this part of the liberal pork stimulus plan to loan money to businesses in order to create jobs. Looks like this one is creating 47000 more people on unemployment.

Great1 Says:

Tue, Feb 17, 2009 at 6:38 pm

Have you driven a Ford lately!