Make us your home page

Driven to a $34B plea

Auto industry CEOs, from left, GM’s Richard Wagoner; Chrysler’s Robert Nardelli; and Ford’s Alan Mulally, are hoping for a better reception before Congress this time.

Auto industry CEOs, from left, GM’s Richard Wagoner; Chrysler’s Robert Nardelli; and Ford’s Alan Mulally, are hoping for a better reception before Congress this time.

How the company is doing Sales down 41 percent in November. Stock price down to $4.85 from more than $38 last year. Without a bailout, the company could run short of cash in just weeks, forcing it into bankruptcy. Sales down 47 percent in November. Controlled by private equity group Cerberus Capital Management. Its cash could fall below the minimum amount required to run the company in the first quarter of next year. Sales down 31 percent in November. Stock price down to $2.72 from more than $27 in 2005. In slightly better shape than the other two after remortgaging nearly every asset in 2006 and dramatically cutting costs.
What it wants $4-billion in government loans this month, another $8-billion by late March, and a $6-billion line of credit in case market conditions worsen. $7-billion loan before Dec. 31. Proposes automakers and federal government establish an independent joint venture to develop improved energy technology, including batteries for electric and hybrid vehicles. A $9-billion "stand-by line of credit" to stabilize its business. Unless one of other Big Three goes bust, the company expects to have enough money to make it through next year without tapping the loans.
Survival strategy Reduce number of hourly and salaried employees to between 65,000 and 75,000 by 2012, compared with 96,000 now; reduce number of dealer locations by 1,750 to 4,700 by 2012; focus on four brands — Chevrolet, GMC, Buick and Cadillac; pay off loans by 2012 or at least start paying them off. Produce first fully electric vehicle in 2010 and expand to more models in 2013; produce more than 500,000 electric vehicles by 2013; terminate car lease program; suspend match portion of 401(k); find a foreign automaker to form an alliance; begin repaying the loan in 2012. Invest $14-billion in part to help make some 2015 models 36 percent more fuel efficient than 2005 models; bring to market a family of hybrids, plug-in hybrids and battery electric vehicles by 2012; introduce six new small and midsize cars over four years. Expects to be profitable or break even in 2011.

Compiled by Times staff writer Graham Brink. Source: Times wires

The Big Three automakers submitted recovery plans to Congress on Tuesday in a second bid at getting low-cost government loans, this time for $34-billion. Last month, they failed to convince a skeptical Congress that they were worthy of a bailout. It didn't help that the three CEOs flew to Washington in private jets. This time they are coming to hearings that start Thursday by car. All three plans include cutting executive pay, seeking concessions from workers and allowing taxpayers to share in gains if they recover. As for the jets: They are being sold. Here's a look at where the companies stand and how they hope to persuade Congress to open the vault. More, 3A

Driven to a $34B plea 12/02/08 [Last modified: Thursday, November 4, 2010 10:47am]
Photo reprints | Article reprints


Join the discussion: Click to view comments, add yours

  1. Tampa is 15th-most popular city to move to with U-Haul


    TAMPA —Tampa is undoubtedly a destination point, at least according to U-Haul.

    Tampa is the No. 15 destination for people moving with U-Haul trucks. | Times file photo
  2. Florida's economy growing faster than other big states and far better than U.S. overall


    When it comes to economic growth, Florida's running alongside the leading states and well ahead of the United States as a whole.

  3. Westshore Marina District project takes shape with another acquisition

    Real Estate

    TAMPA — One of Tampa Bay's prime waterfront areas took another major step toward redevelopment Friday as WCI Communities bought 2.35 acres in Westshore Marina District.

    WCI Communities, Lennar's high-end subsidiary,has paid $2.5 million for 2.35 acres in the Westshore Marina District for 35 townhomes. WCI is under contract  to buy an additional 9.5 acres.
[BTI Partners]
  4. Posh Guy Harvey RV park to open in Tampa Bay with $250,000 cottages


    HOLIDAY — Love those Guy Harvey T-shirts with the soaring marlins? In the not too distant future, you might be able to kick back in your own Guy Harvey cottage in the first-ever Guy Harvey RV park.

    Renderings of the clubhouse and an RV cottage site of the planned Guy Harvey Outpost Club & Resort Tarpon Springs.
[Guy Harvey Outpost Collection]
  5. Port Tampa Bay secures $9 million grant to deepen Big Bend Channel


    Port Tampa Bay has secured a $9 million grant from the U.S. Army Corps of Engineers for the widening and deepening of the Big Bend Channel in southern Hillsborough County.