New York (HedgeCo.Net) – Board members of General Motors met this past weekend to go over a proposal that will be presented to Congress today in hopes of securing up to $12 billion in emergency funding. The money is part of a larger, $25 billion bailout plan that GM, Ford and Chrysler have been seeking.
After originally rejecting the plan, Congress told the big three auto makers to present a revised version of their request, with detailed information on how they will use the money to turn their companies around.
Chrysler, who has vocalized their need for an alliance with GM and Ford in order to weather the financial crisis, is also busy putting the finishing touches on their revised plan. “Chrysler is fine-tuning its original plan to meet the reset requite from congressional leadership,” said spokesperson for the company, Lori McTavish. “The company’s board will be part of the final review process leading up to Tuesday’s submission.”
The automakers are expected to present a plan that focuses more on fuel-saving new technology that could eventually yield 35 miles per gallon on their vehicles, in addition to slashing executive pay and bonuses. Ford, who is least troubled by financial woes out of the three, is expected to only seek a line of credit from the government.
The automakers have faced increased reluctance from many members of Congress, after months of government handouts to major financial institutionals. Speaker of the House Nancy Pelosi and Senate Majority Leader Harry Reid recently sent a letter to the three executives, saying that they must be "making significant sacrifices and major changes to their way of doing business," which will be presented in today’s plan.
Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net
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