After last week’s auto hearings, the heads of the Big 3 were told to scurry back to Detroit (or Seattle, on his jet, in the case of Mulally) and come up with a turnaround plan, before coming back again in December to beg for cash. It’s a silly excercise, this idea that they can solve what’s been vexing them in less than a month. We’ll also sympathize with them (a little) if the automakers and the unions feel exasperated, having spent the last few years cutting costs and renegotiating contracts.
Anyway, here’s what GM (GM) has come up with so far:
Bloomberg: General Motors Corp., in danger of running out of cash this year, will seek to negotiate a cut in debt levels and new union work rules to help boost its chances of winning federal loans, people familiar with the plan said.
The largest U.S. automaker also may ask to delay a $7 billion payment to a union retiree health fund, drop more brands and rework an accord with GMAC LLC to prove it can survive and repay the government, said the people, who asked not to be named because details haven’t been presented to Congress.
Chief Executive Officer Rick Wagoner is under a Dec. 2 deadline set by House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid to show how he’ll reshape operations as a condition of a $25 billion industry rescue. Congress may vote on the package on Dec. 8.
Directors are scheduled to meet by phone today, Nov. 26 and Nov. 28, and then gather Nov. 30 and Dec. 1 to review the plan, the people said. GM expects to produce a 10- to 12-page public report for a Dec. 5 congressional hearing and an 80-page semi- private report with background material, the people said.
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