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Cars Blog

Automakers Seek $14 Billion More in Aid

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February 18, 2009 9:54 am
By Peter C. T. Elsworth

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DETROIT -- The price tag for bailing out General Motors and Chrysler jumped by another $14 billion Tuesday, to $39 billion, with the two automakers saying they would need the additional aid from the federal government to remain solvent, according to The New York Times.

G.M., for example, said it would cut 47,000 more of its 244,000 workers worldwide; close five more plants in North America, leaving it with 33; and cut its lineup of brands in half, to just four: Chevrolet, Cadillac, GMC and Buick.

The Pontiac brand will have a much smaller role, if any, in G.M.'s future, and the company also said it would phase out its Saturn brand, which it once hoped would build small cars to counter the best of the Japanese brands.

G.M. also said it had made progress in discussions with the United Automobile Workers union and its bondholders to reduce its costs further.

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