As Rick Wagoner, Robert Nardelli, and Alan Mulally head back to Capitol Hill (via carpool?) for the second round of their big Begathon, each of them plans to present different reasons why they each need a bailout. But basically they all need it to keep from filing for bankruptcy, especially Chrysler.
NY Times: General Motors, the biggest of the troubled car companies, is expected to propose a significant shrinking of its North American operations, including shutting more factories and streamlining its sprawling brand lineup, according to people with knowledge of G.M.‘s deliberations…
The Ford Motor Company, however, is not likely to propose more cuts, as it is further along than Chrysler and G.M. in shifting to a more fuel-efficient lineup of vehicles. It also has more cash to weather the downturn. Instead, people with knowledge of Ford‘s strategy say the automaker is considering more symbolic moves, including reducing the pay of its chief executive, Alan R. Mulally, who earned more than $21 million last year.
The third automaker, Chrysler, which is privately owned, has acknowledged it is running out of cash and may tell Congress that it needs a merger or alliance with another company to survive long term…
Both G.M. and Ford are using up more than $2 billion in cash a month, but Ford has greater cash reserves — $18.9 billion compared with $16.2 billion at G.M. — and a $10.7 billion line of credit from private banks to carry it at least through 2009.
Because it is in better financial shape, Ford is not asking for an immediate infusion of government money. Instead, the company will seek access to about $7 billion in federal aid only if its own cash runs out…
In an e-mail message to employees last week, Mr. Nardelli said its explanation for how it would use $7 billion in government loans was a simple one. “In short, the money would be used to support our ongoing operations,” he wrote.
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