GENERAL MOTORS CORP.:
_ Seeking $18 billion split into a $12 billion term loan (of which, $4 billion would be provided by the end of December) and a separate $6 billion revolving line of credit if market conditions deteriorate. Anticipates using $10 billion to $12 billion of the money by the end of March.
_ CEO Rick Wagoner would receive salary of $1 in 2009, and GM's board members would receive retainer of $1 for the year. The four most senior executives would have their compensations cut in half.
_ Would reduce number of hourly and salaried employees to between 65,000 and 75,000 by 2012, compared with 96,000 now.
_ Expects to reduce number of dealer locations by 1,750 to 4,700 by 2012.
_ Would reduce number of U.S. powertrain, stamping and assembly plants from 47 to about 38 by 2012.
_ Would seek concessions from UAW to get "right-sized." Without providing details, GM's plan said, "We clearly need to deal with things like job security provisions, like levels of manpower and also how do we actually create more turnover in our work force" to hire more second-tier, lower-paid workers.
_ Expects to fully repay the loans by 2012. If market conditions deteriorate, the company would at least begin to repay loans by then.
FORD MOTOR CO.:
_ Asking for access to standby revolving line of credit of up to $9 billion at government borrowing rates for a 10-year term, but says it may not need to tap into those funds.
_ CEO Alan Mulally would receive salary of $1 if Ford uses any loan money. Management bonuses would be canceled for 2009, and merit pay increases would be eliminated for salaried U.S. workers.
_ Already planned to convert three North American truck assembly plants to small car production and will allocate about half of future plant capacity to small and midsize vehicles. All shops will be flexible body shops by 2012.
_ Previously announced plan to cut about 10 percent of its North American salaried work force of 22,600. Ford has also eliminated merit pay increases, bonuses, 401(k) matching and tuition assistance benefits. Life insurance benefits for retirees is being capped at $25,000, for a total of $1 billion in estimated operating cost savings in 2009.
_ Plans to introduce six new small and midsize cars over the next four years.
_ Plans to improve fuel efficiency for Ford/Lincoln/Mercury fleet by 14 percent in 2009, 26 percent in 2012 and 36 percent in 2015.
_ Plans to double the number of flexible fuel vehicles by 2010 and have 50 percent of its fleet, including hybrids, capable of running on E85 by 2012.
_ Expects to achieve profitability or break even in 2011.
CHRYSLER LLC:
_ Seeking $7 billion bridge loan by the end of 2008 in addition to $6 billion from an already-approved Energy Department program established to encourage production of fuel-efficient cars.
_ Expects to spend $11.6 billion in the first quarter, including $8 billion to parts suppliers.
_ Suspending company's match portion of the 401(k) plan, terminating its lease car program and increasing salaried employees' contributions to health care costs.
_ Says CEO Bob Nardelli already receives an annual salary of $1 and gets no health care, insurance or similar benefits from the company.
_ Plans to produce its first full-function electric vehicle in 2010 and expand to additional models by 2013. Expects to produce more than 500,000 electric vehicles by 2013.
_ Has support of its private equity owner, Cerberus Capital Management LP, to offer the government warrants, common or preferred equity.
_ Says it will cooperate with government's oversight panel and will provide regular financial information.
_ Says it will be "well positioned to begin repayment of the federal loans in 2012" and under its plan, after making a $1 billion payment toward the government loan, the company will have approximately $12.5 billion in cash by 2012. |
