GM, Chrysler now say they need billions more
2/18/2009
General Motors Corp. and Chrysler LLC summoned the prospect Tuesday of their collapse unless they get $7 billion in federal aid within six weeks — part of a dramatic plea for a total of up to $39 billion to survive the worst economic crisis in the history of Detroit’s signature industry.
Yet the automakers warned that any new money from the federal government would be much cheaper than the staggering cost of bankruptcies and forced liquidation of the two companies. By their estimates, bankruptcies would cost a combined $124 billion in federal loans and up to 3 million lost jobs.
Since GM and Chrysler submitted their last restructuring plans to Congress in December, their estimates of what they need to survive has grown by $14 billion combined, reflecting the worsening U.S. economy and a lack of credit for potential car buyers.
Harold
