.
February 17th, 2009
06:48 PM ET

General Motors to Ask for $16.6B in Govt. Aid; to Slash 47,000 Jobs

Chris Isidore
CNNMoney.com senior writer

General Motors and Chrysler LLC presented their updated turnaround plans to the federal government Tuesday and said they could need an additional $21.6 billion in federal loans between them because of worsening demands for their cars and trucks.

The two firms also detailed plans to cut 50,000 jobs by the end of the year.

GM said it now may need as much as $30 billion by 2011, up from the $13.4 billion in federal loans it has already received. The company had originally asked for $18 billion in federal help last December.

Read more...


Filed under: Bailout Turmoil • Economy • Raw Politics
soundoff (32 Responses)
  1. Gene Penszynski from Vermont

    With all the emphasis on U.S. car makers there is little notice that ALL car sompanies are doing poorly and that INCLUDES the Japanese and German companies as well folks. These companies are recieving their own balloouts from their respective governments and they are LAYING OFF workers as well !!!!!! It's not so much that American companies have 'mismanged' things as it is the general financial crisis that G W Bush Republicanism has brought on us all.

    February 18, 2009 at 10:46 am |
  2. Ilene Bogue

    I'am a former Chrysler Worker and I'm tired of hearing about job cuts. Chrysler has waisted so much money in the 14 years that I was employed there. They are asking for help from the American tax payer yet they are downsizing the work force. How do they think that effects the bottom dollar? It doesn't! That would just be 3000 less workers paying taxes. They need to eliminate waste in the plants they own. Take for instance at Kokomo Transmission Plant in Kokomo Indiana. They have eliminated Third Shift so they people that come in on day shift sit around for 2 hours waiting for parts to run on the line. Does this sound like a smart thing to do? They don't listen to the employees. The simple thing would be to stagger dept. clock in time. If they had people come in where necessary to push iron thru for first shift so as soon as the first shift employee came in they would be able to go to work. Just a 2 hour early start for some departments would make a differance. The waste that goes on in these plants are substancial. I took the VTEP because of frustration and disappointment in a work environment that is not changing. I think they need to have someone go thru that does not work for their company and ask WHY DO YOU DO IT THAT WAY? Sometimes a differant eye can see a better way. They want to get lean in their business but the program they have implemented is not working.

    February 18, 2009 at 8:23 am |
  3. Charles A Ramey

    It would seem to me the best answer for GM & Chrysler (and any and all companys that are in trouble for that matter) would be to cut the employee pay acroos the board from exec to janitor and no lay offs which is defeating the purpose of the bill.
    This would save jobs the companys would save becuase their comp. and payroll and payroll tax would be less in thurn they could lower the price of their product then people could afford to buy them. I realize that this would mean a probable labor union buck but these people (the worker need to realize their union has priced them out of a job.Negotiating a new contract with significant pay cuts would save jobs and companys.
    Troughing taxpayer money at this is not going to stimulate people to buy the cars they cant afford them.
    I'm all for making a decent living and living the American dream but thesa people have made the American dream an American nightmare.People where I live are makeing half or less than these autoworkers and they live just fine.
    Anthony from southwest Virgina

    February 18, 2009 at 8:03 am |
  4. Danny in common sense Louisiana

    My wife and I tried to buy a second home in Forclosure stressed Sarasota Florida, the house we looked at was a bank forclosure with Countrywide,.. the problem we ran into was that the local real estate agents kept steeering us to homes that they would make more money in comissions on, as opposed to the homes we wanted to look at . when we contacted a different agent , we got the same run around, with the same requests as to square footage, bedrooms, baths,etc, with each agent it was the same .. and with each one in the same town.. we still got different listings. but in every case the sale would have benefited the agent in one way or another..

    February 18, 2009 at 2:45 am |
  5. Danny in common sense Louisiana

    The sad thing is that Almost all of our governmental leaders just don't get it.. the reason we are in this mess is because of all of the manufacturing jobs that have left this Nation, not the forclosures of the housing market like they would like you to believe.. American jobs are what we need not , new television sets made in china, not new clothes made in bangladesh, not new steel made in france or japan.. we need jobs here in America .. It was the manufacturing plants of the northern states durring the civil war that actually won the war for the North. It was the manufacturing plants that produced the thousands of tanks and weapons and airplanes and jeeps durring the second world war that actually won the war for us .... The Lessons of the past have been forgotten and now ... where will the steel for these many projects come from? Germany? france? where will the thousands of workers we will need come from? Mexico? Argentina? We need to enforce the imigration laws and put Americans to work and the only way to do that is equitable trade laws and deficits... and no the price of oil should not be concidered when figuring that deficit.. building factories in America is a must or we all lose..

    February 18, 2009 at 2:20 am |
  6. Natalie

    I think the these companies asking for bail out is like a 5 years old. Bail me out.... bail me out... NO MORE!! Let these companies fail. What does this bail out tells us? that these companies are not being run efficiently and effectively. They are not being managed right.. After these many many years of doing business and still not learning from past mistakes...I don't think they will ever learn. If these companies can't survive doing business.. then don't be in business... be OUT OF BUSINESS!! Let those workers find other jobs... work for those companies that are being managed right.

    February 18, 2009 at 2:19 am |
  7. Bernie

    Chevrolet Volt, you too can own one for only $42,000.00. You got too be kidding ! I won't buying one in this lifetime! It's time too stop bailing out these companies.

    February 18, 2009 at 1:33 am |
  8. lorraine

    don`t help them until we the tax payer get help

    February 18, 2009 at 1:29 am |
  9. Rose Ann Colorado

    I do not feel sorry for our car companies at all. Who are they building a hummer, cadillac ect.... for? Not me and not you. they were so busy building big expensive cars that they are in trouble now. To bad so sad. Build a car we can afford like toyota, honda, nissan ect... Wake up america. Let them go under.

    February 18, 2009 at 1:16 am |
  10. Sharon

    I could afford to buy a new car and help out, The problem is government is spending all my money for me. Last I heard my share is appx 50,000 dollars for the bail out so far. (more to come) It's just plain loco.

    February 18, 2009 at 1:15 am |
  11. Jeff Perry

    I've always said that every job has it's good and bad, and every union has it's good and bad. It seems with GM and Chrysler, when times were good, they had no problem keeping up with the union demands. As long as both sides were making money, everyone was happy. Well now times have changed. Funny thing is, the unions haven't. They will not bend at all. They cannot see any farther than beyond their wallet. They need to come out of the fog and realize that very shortly, their financial lives could change for the worse. They are not amune. The union shield is wearing very thin. As for the executives on both sides that signed these agreements, they are retired somewhere with not a worry on their minds. It must be great to sleep well at nights.

    February 18, 2009 at 12:21 am |
  12. Doug

    Upwards to $30 billion more for GM? Not a problem if it's from someone like Warren... but would he feel it prudent to do so? Why aren't the expectations the same if it's public money? GM and Chrysler basically don't exist anymore. Their existence is similar to many government programs, solely by virtue of more tax dollars.

    The public should expect tangible measures for such "investment." Retained jobs for Americans who will then spend in "this" economy. Alignment on those worker's salaries with a competitive review. Workers need to look at the alternative – the streets and soup kitchens. Leaders need to see the same level setting where the "irrational exhuberance" in their salaries is put in check. I'm sure there are more compromises that need to be demanded for this industry to be viable.

    As you can see, the common theme for this effort is to build up our domestic industry with an eye to build competitiveness in long run. Where has the idea of a free market gone? Sad and amazing what such fundamental greed of the "few" has wrought for the many.

    February 17, 2009 at 10:46 pm |
  13. Abrahm

    Everyone here are idiots, I mean to everyone that responded you really consider your self an American citizen when you are buy crappy Japanese cars. For those who do not know the facts get it straight GM, Chrysler and Ford are making way better cars than Honda, Toyota, Nissan, etc. For ignorant people to say that the big 3 are no good shows how much they know about cars. First of all Toyota gets bailouts from the Japanese government all the time, and just because now the big 3 are asking for money Americans are complaining, instead of complaining about it why don`t you go help out the companies and be an American not a Jack ass. So quit your winning and stop thinking that Honda is a better car company than these 3 auto makers. Any one have a problem let me know.

    February 17, 2009 at 10:46 pm |
  14. kylee in ny

    Why give them more money? Us taxpayers have given enough and have nothing in return. We have mouths to feed, bills to pay, mortgage payment and property taxes. Is the government going to bail me out over $2000 dollars that I owe in back taxes and going to lose my home in less than a month because I have no money to pay them? I don't think so! And then what – my kids and I will be out on the street – Bail out us little people who are trying to make ends meet everyday – hand us some money to take care of our bills, make our mortgage payments, ect... It would be a lot cheaper and we could all stay in our homes and keep our vehicles. I have always purchased GM and Chrysler vehicles – before I lost my job and I could get financed, every 2 years I had a new vehicle. Forget it – I will never purchase another GM or Chrysler made product in my lifetime and I am 30!

    February 17, 2009 at 10:24 pm |
  15. jeremy

    You want my money give me a car no one wants to loan people money yet you still want us to pay for your mess ups give me a break learn how to run a business or fail like everyone else

    February 17, 2009 at 10:10 pm |
  16. Sawvalt

    After many years in the united states, I was finally able to live the american dreams some two years ago. I bought my first house and move in it shortly afterward. But few month ago I was laid off and diagnose with kidney cancer, but I continue to make my monthly until now. I called my mortgage company to do a loan modification just to keep the roof over the head of my two beautiful but the mortgage that I am dealing with Countrywide has denied me my request. what can should we do just to keep our house. Even though we stay make our payment. Just reduce the interest rate or adjust our loan.

    February 17, 2009 at 10:01 pm |
  17. paul mayuw

    Where else was the tax money going before the stimulus package, if not to stimulate the economy?

    This has gone from a bailout to a stimulus. You can change the words as much as you like. i thought the government had been stimulating the economy since they started with Keynesian economics.

    From what i can see, i think the people are tired of the government stimulating anything.

    Bailout? Wait did that already happen ? is this the second round of tax payers money that is being leveraged. This time with an obamo stamp of approval. Tagged with some hope and change. You really can't go wrong.

    it is one big magic trick and you are not the magician.

    February 17, 2009 at 9:35 pm |
  18. Jim M

    And some people are complaining that jobs to be created by the Stimulus Package are going to cost more that $75,000 each.

    Looks like GM wants us to pay them $325,000 for each of the 47,000 additional jobs they plan to eliminate this year.

    At this rate, they'll be back at the end of 2009 seeking another $10 Billion. By that time, the only employees left at GM will be its president and dozen or so vice presidents.

    If they can't figure out how to save themselves without more of our tqax dollers, let them go bankrupt.

    February 17, 2009 at 9:12 pm |
  19. Mike, Zephyrhills, FL

    GM BUYOUTS,

    They get $45,000 lump sum, and then $2800 a month for an assembly line worker, and and extra $300 to buy their own health insurance. The guy is 53 yo and goes out and get another job , a poor guy laid off needs.

    Yep I see why they need more money!! Pay people to stay home and get other work.

    Glad to see the rest of us have such good deals. NOTTA!!

    Ill never buy another American Made Car!!

    February 17, 2009 at 8:50 pm |
  20. Tom in Fairfax

    We have created a global economy and are smack dab in the middle of it. Go into your office or your living room or your kitchen and look at the PC, VCR, toaster, fridge, washing machine...most of those items are either made outside of the US or are full of parts that are assembled in other countries. We wanted it, we got it...to stay competitive, companies decided decades ago to rely on cheap labor in other countries. We can't have it both ways. The company who can crank out a quality automobile that gets the best gas mileage, is going to get the business. That company won't be determined by an international border, but rather by their ability to get their product to the market where it will be purchased. Detroit has to know this and is not willing to re-tool but rather holds their hand out to the US consumer. We're ask to pay them to stay in business, and then to buy their product which doesn't compete with their global peers. Detroit needs to re-invent itself or it will die while we all end up purchasing cars made in Punjab or Shanghai. Our move more and more to isolationism is short sighted and unwise...it didn't work in the 30s...it won't work now. Make a $4 hammer that works, and I'll buy it.

    February 17, 2009 at 8:14 pm |
  21. Annie Kate

    Sounds like whether the American car industry survives or not that a lot of people are going to lose their jobs. The layoff numbers are horrible. I'd rather help the workers than the companies – the companies have already proved they are unresponsive to the market by refusing to make the type of cars people wanted for so long; I bet their employees will make any kind of car someone wants – they don't care as long as they have a job. I think the government needs to recall their loans and let the auto industry pull themselves back up – if we help them this time it will happen again and they will expect help again; we can't afford to keep doing this.

    February 17, 2009 at 7:59 pm |
  22. susie

    To Luis go ahead move along. thank goodness for the unions in this country, we need more, and for the UAW DON't give them any more we are now the poor we cannot pay our bills and go to the doctors, we also must wait if we need blood work ect. you people are misinformed, you need to hear the truth WE HAVE BEEN SCREWED,now we can't buy a car or support our own country, gee maybe food stamps ect.......the cuts have been made leave us alone go for the big boys who know what they are doing........LEAVE WHAT LITTLE MEDICAL WE HAVE ALONE ,WE ARE RETIRED AND THIS IS ADDING TO OUR ILLS. THE DETAILED PLANS LEFT THE MOST IMPORTANT THING OUT PEOPLE 38YRS TO GM.

    February 17, 2009 at 7:58 pm |
  23. Sal

    That's GM's plan?

    Take up to $50 billion in "loans" and fire 47,000 more workers??

    I don't think the American people will stand for that. It isn't fair and it isn't a plan.

    It's Republican.

    February 17, 2009 at 7:55 pm |
  24. Greta

    More money and fewer jobs? How many execs are they firing? How many execs are taking cuts in pay? People don't want their cars and trucks? Awww. Could it be because (1) people don't have money and have lost or may lose their jobs and (2) they don't want gas-guzzlers?

    Instead of "me, me, me" perhaps the execs at GM and at the banks and at AIG, etc., should think, what can we do to help our fellow citizens? What can we do to see that people have food to eat, homes to live in, good schools for their children, and jobs that provide decent benefits?

    Don't send these people to prison. Sentence them to a 1000 square foot house max with a leaky roof and old furnace, a ten-year-old car, and a job that pays $30,000 a year–and then ask them for more, more, more.

    February 17, 2009 at 7:30 pm |
  25. Marvin

    This is a big problem but to narrow is down in under 500 words is difficult here. So break down the north American auto to each individual piece, look at the suppliers and the profit demanded by their shareholders, as each part mates to a larger component, the price goes up. Wheel hub bearings cost the supplier 56 bucks, but by the time you have it fixed at the garage its 800- 1300. Since when did we see insurance commercials on TV for auto repairs?

    Way too many models of the 1/2 ton pick up truck, narrow it down, same with the soccer van.

    If you roll back the wages of the $30/hr worker, roll back their mortgage because their standard of living will be higher than a tier 3 plant suppliers wage. Which leads me to the final debate,

    How can the big three justify their wages when the suppliers do the same principal- work! At half their wages. Parts suppliers or component suppliers make $9.00/hr up to 22/hr, yet the big three for many years made much more. Work is energy spent on a human being, now a medical professional; they should make more than CEO’s their at least saving lives.
    After working in a supplier plant for 25yrs, I have experienced many things. Im sure others have as well.

    February 17, 2009 at 7:28 pm |
  26. Shelley in North Idaho

    Take Take Take!
    Im tired of corporate jerks taking my hard earned money!
    my kids need to eat and I have a mortgage and bills to pay.
    File for bankruptcy and be done with it. That is what "ordinary people" have to do sometimes....no one is giving us money when we need it. Corp america is taking our, money, homes and dignity....I wouldn't be surprised if they asked for our souls next.

    It's so ironic....we give to Corporate America but Corporate America can't and won't give to us.

    NO FREEBIES!!!!

    February 17, 2009 at 7:26 pm |
  27. Bill Keehn Sr.

    (Melbourne, Florida)

    It's past time to send these companies into bankruptcy, cancel labor contracts, and medical benefits and put our dollars into a
    national health plan that everyone can sign up for. Sell off the plants and retool them for the items necessary to build the windfarms etc. No one wants their products anymore.

    February 17, 2009 at 7:21 pm |
  28. Harlan

    GM and Chrysler what WHAT? $30+ Billion MORE! And they want to close MORE U.S. plants, put MORE U.S. citizens out of work and they expect the U.S. tax payer to fund them and so they can continue to outsource America to other countires. NO! Absolutely not. The Government should make it a requirement that 1) No current U.S. jobs / plants are lost or closed until all off shore plants and employees doing similar jobs that are done in the U.S. are closed or unemployed. We should not be using taxpayer dollars to support other countires people while our citizens are losing everythig they had because of Wall Street and large corporate GREED. If they can't make it using only U.S. plants and personnel to survive then they need to shut down. No more subsidizing the outsourcing of America.

    February 17, 2009 at 7:07 pm |
  29. Jean Surack

    G.M slashing 47,000 jobs? I thought the
    first 'hand-out ' also included saving jobs at all costs.
    Jeez, moving plants to other countries, outsourcing,
    now cutting 47 thou jobs all the while they are asking for
    more of MY money-
    i say no more bail-out dough for
    'job slashing' G.M.

    February 17, 2009 at 7:05 pm |
  30. Luis

    Nothing is going to change at GM unless they file for bankruptcy and break free from these Union Contracts.

    I cannot believe the Union is unwilling to cut back on pay and benefits and all that non-sense that puts over $3000 of legacy cost to every vehicle. No ones buying because their to freaking expensive.

    I'll go to Toyota, Nissan, Honda for cheaper cost.

    February 17, 2009 at 7:02 pm |
  31. Rita in Orlando

    The company I work for has decided, that in order to survive this economic crisis, to freeze UPPER management pay increases for 1-2 years; to freeze all 401k contributions for the year 2009; to decrease the hours in order to maintain full time status from 34 to 30 per week, in order to cut hours but not benefits of it's employees; and to perform an audit on our benefits to assure that those "dependents" that are enrolled are IN FACT dependants.
    Why can't these companys do the same in order to save their company without having to cut jobs and file bancruptcy????
    Why do these companys feel that the only recourse is LAY OFFS???

    February 17, 2009 at 7:01 pm |
  32. JQQ -Brea California

    Why put money into something no one wants?

    The Smart Car requires $100 just to be on their waiting list. Dang, I need a car.
    But it will not be a GM or Chrysler gas hog!

    NO FREEBIES!

    February 17, 2009 at 7:00 pm |