With their new, revised plans in hand, the Detroit Big Three submitted their second plea to Congress this week, asking for even more money than they did last month.
GM, Ford and Chrysler are asking for $34 billion in direct federal aid and $11 billion from the Department of Energy to develop hybrids and more fuel-efficient vehicles, CNN Money reports. Here are the main points of each automaker’s plans:
· GM says it needs $4 billion of its total $18 billion request before the end of the year in order to stay afloat. GM suggested the Pontiac and Saturn brands could be dropped. GM also said it will sell four of seven jets and may transfer leases on the other three to another operator.
· Chrysler is asking for a $7 billion loan from Congress, which it said it needs by Dec. 31 to stay afloat. Chrysler is also seeking $6 billion from the DOE but says cost-cutting and reduced benefits for employees can make the company profitable by the end of 2009. Chrysler does not own any private aircraft but instead leases them on an as needed basis.
· Ford is requesting a $9 billion line of credit and $5 billion from the Energy Dept. Ford says it might not actually need the money and believes it can turn a profit by 2011, unless the economy worsens and car sales continue to plummet. Ford said it will sell all five of its corporate jets.
Sales figures for November also came out yesterday as the automakers submitted their plans. November’s figures were the worst U.S. sales in 26 years.