Big US 2 cash demand
February 18th, 2009 by Richard Aucock
TROUBLED US car makers met a deadline to submit recovery plans to the US Government – demanding more cash.
GM, which owns Vauxhall, Saab, Chevrolet and others, asked for a shocking $16.5 billion late last night in an attempt to avoid bankruptcy.
In return, it pledged to cull 47,000 jobs – over half of which will be from OUTSIDE the US.
It has also said it will SELL subsidiary Saab, possibly to the Swedish Government, and close 5 US car plants.
Chrysler, meanwhile, begged for $5 billion from the American rulers, in return for cutting 3000 jobs.
The company has also said it will stop production of 3 models – 2 Dodges not sold in the UK, and the Chrysler PT Cruiser, which has disappeared from UK showrooms anyway.
US Treasury officials will now study the plans submitted by both car makers. It will make a decision on whether to approve the bail outs in March.
If it doesn’t, the companies will face Chapter 11 Bankruptcy – with huge implications for the car industry.
Come back to Car Dealer for reaction throughout the day.
By Richard Aucock
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