Tuesday, December 2, 2008

Detroit Three publish rescue plans

The so-called Detroit Three,Chrysler, Ford and General Motors have all submitted their proposals to Congress for multi-billion dollar loans that could decide the survival of the companies.US Carmakers have asked for a combined total of $34bn. General Motors asked Congress for a loan of $12bn , with an additional $6bn if necessary, to help it survive.Ford meanwhile requested a $9bn  bridging loan, which it hopes it will not need.Chrysler sought $7bn to survive the dramatic slump in sales that has decimated its cash reserves.

Reducing costs, reducing debt levels  and investing in greener technologies form the centre-piece of each proposal. The chief executives of Ford and GM have even offered to work for $1 a year if Congress approves the emergency aid.Sales at all three of the carmakers have plunged as US consumers tighten their belts in the face of the severe economic downturn.

Analysts feel its a tough task. 

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