Detroit Now Says It Needs $34 Billion
Greg Brown
It’s starting to sound like a skit from Saturday Night Live.
Just a week after the show lampooned the automaker CEOs, suggesting that their recovery plan would simply mean their asking for ever-larger sums of taxpayer cash, it is already happening.
U.S. automakers started out asking for $25 billion. Now it is clear they really need at least $34 billion in cheap loans from Congress.
General Motors wants $18 billion, while Ford is asking for $9 billion. Chrysler LLC, a privately held company run by private equity firm Cerberus, is expected to ask for $7 billion, according to The New York Times.
All three claim, with some caveats, that their chief executives would take salary cuts to $1 a year. Some will sell corporate jets, and at least Ford and GM plan to drive their CEOs back to Washington Thursday.
The car companies turned in the plans in advance of a re-do of the disastrous appearance last week that generated so much ridicule on late-night comedy TV.
GM appears to be in the worst spot, although it’s hard to say what condition Chrysler might be in, since it doesn’t have to share its numbers. GM, in its new plan, told Congress it needs $4 billion right now just to keep the doors open.
moneynews.com/streettalk/automaker_bailout_bill/2008/12/03/157635.html