US carmakers seek rescue plan

General Motors, Ford, and Chrysler have all submitted their proposals to Congress, asking for a combined total of $34 billion with the promise of slashing costs, reducing levels of debt, and investing in greener technologies. ┬á General Motors asked Congress for a $12 billion loan in order to provide adequate funding through 2009, as well as a $6 billion line of credit in case industry conditions worsen. ┬á Chrysler asked for $7 billion to survive the severe 47 percent drop in sales that has annihilated its cash reserves, while Ford requested a $9 billion bridging loan that it said it may not have to use, commenting in a statement that ÔÇ£it hopes to complete its transformation without accessing the loan should Congress agree to make the funds available.ÔÇØ ┬á General Motors said it would continue its efforts to develop more fuel efficient vehicles, with an investment of $2.9 billion in alternative fuels, and reduce its workforce considerably by 2012.┬á The company also said it would cut top executivesÔÇÖ pay, and reduce chief executive Rick WagonerÔÇÖs annual salary to just $1. Ford boss Alan Mullaly agreed to the same salary, pending its need to call on the emergency loan. ┬á Both General Motors and Ford agreed to sell its combined nine corporate jets as a way of reducing costs, after embarrassing themselves by disembarking from private planes to beg for a handout from the American public last time they went to Capitol Hill. ┬á ItÔÇÖs no shock then that the White HouseÔÇÖs already expressed skepticism about the bail-out is still showing. ÔÇ£We are sticking to our guns that the companies have to prove they are viable before taxpayer dollars should be given to them,ÔÇØ said White House press secretary Dana Perino. ┬á Eric Noble, president of Car Lab, a California-based consulting firm for automakers said, ÔÇ£Our expectation is that they go and duly genuflect and appear repentant.ÔÇØ ┬á ÔÇ£We hope that we can work something out,ÔÇØ Senate Majority Leader Harry Reid told reporters. ÔÇ£We donÔÇÖt want to throw them a lifeline if the lifeline doesnÔÇÖt get them to shore.ÔÇØ