GENERAL MOTORS and Chrysler have requested nearly $22 billion (€17.5 billion) in additional US government loans and said they had reached tentative deals with unions to reduce labour costs.
The two motor manufacturers, which have so far received $17.4 billion in loans from the US treasury, also detailed plans to cut jobs and idle plants as part of sweeping restructuring plans submitted under the terms of their federal bailout.
GM said it was making progress on complex deals to reduce some $48 billion in debt owed to bondholders and the United Auto Workers union (UAW) but had fallen short of an initial requirement to complete those agreements by yesterday’s deadline for submitting the plans to US officials.
“The president’s team will be reviewing these reports closely in the days ahead,” White House spokesman Robert Gibbs said in a statement. “It is clear that going forward, more will be required from everyone involved.”
GM is seeking an additional $16.6 billion from the US treasury – for a total of up to $30 billion in loans – and said it would run out of cash as soon as March without new federal funding.
