This is the sad, sad face of “viability”. GM says it needs another $16.6 billion in addition aide right away, and that it could go bust as soon as next month without at least some help. What’s more the company will need to shutter 14 plants and cut 47,000 jobs!
Again, this is their viability plan. How will the administration even justify the notion that this is worth saving? They’re toast.
WSJ: GM, in a 100-plus page report submitted to the U.S. Treasury, argues that bankruptcy would still be more costly and drawn out than a government-funded restructuring. The auto maker said a traditional bankruptcy could cost as much as $100 billion, attributing much of that cost to lost revenue.
Instead, GM proposes an accelerated downsizing that involves cuts deeper than those outlined in December. Steps include shuttering 14 factories by 2012 rather than nine, eliminating 47,000 hourly and salaried jobs this year globally, and closing its Hummer truck brand this year and Saturn in 2011 if no alternatives arise.