This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7893574.stm

The article has changed 9 times. There is an RSS feed of changes available.

Version 1 Version 2
GM and Chrysler to detail plans Chrysler and GM seek further aid
(about 8 hours later)
Troubled US carmakers General Motors and Chrysler must later submit their survival plans to the government, as part of the terms of their bail-outs. Troubled US carmaker Chrysler has asked for another $5bn (£3.5bn) from the US government, saying it plans to axe 3,000 jobs and cut three car models.
They are set to detail their latest cost-cutting programmes in order to keep multi-billion government's loans. The moves form part of its restructuring plan submitted to the Treasury Department on Tuesday.
A US official said GM would get another $4bn ($2.8bn) on Tuesday on top of already received loans worth $10.4bn. Meanwhile General Motors has said it would try to borrow up to $16.6bn more from the government, on top of the $13.4bn it has already received.
Chrysler is also expected to get an additional $3bn loan on Tuesday. It has already received $4bn. Its plan includes cutting 47,000 jobs and closing five more US factories.
GM says that it could but it could be in profit within two years and fully repay its loans by 2017.
'Lot of work'
In December GM had said it would cut the number of plants from 47 in 2008 to 38 by 2012, but has now added another five factories facing the axe, with would leave it with 33 facilities.
The carmaker's brands would also be reduced from eight to four - Chevrolet, Buick, Cadillac and GMC.
GM chief executive Rick Waggoner said the company's plan was "comprehensive, responsive, achievable and flexible".
"We have a lot of work in front of us, but I am confident it will result in a profitable General Motors," he added.
The plan came after Chrysler, which was given a $4bn loan by the US government at the end of 2008, revealed its own survival plan.
Unveiling its proposals, Chrysler said it now expects the current downturn in the US car market to last another three years.
'Said right things'
The US's third biggest carmaker said its radical surgery had the support of the United Auto Workers (UAW) union, dealers, and suppliers.
The UAW says it has also reached tentative agreement with Ford and General Motors to help cut those firms' labour costs.
Meanwhile, Chrysler also said it planned to cut outstanding debt by $5bn and reduce fixed costs by $700m in 2009.
Analyst Lincoln Merrihew, of TNS Automotive Consulting, said: "I'm curious to see how the government responds to this plan, but Chrysler has said all the right things."
Union talksUnion talks
GM's cost-cutting plans are expected to include the closure of several plants, and sale of brands like Hummer and Saab. GM confirmed last week it was cutting 10,000 jobs worldwide by the end of 2009. About 3,400 jobs will go in the US under GM's initial restructuring plan submitted to the government last December.
GM, Ford and Chrysler have warned they risk collapse without state aid
The company confirmed last week it was cutting 10,000 jobs worldwide by the end of 2009. About 3,400 jobs will go in the US under GM's initial restructuring plan submitted to the government last December.
However, GM is not expected to reached detailed redundancy agreements with the United Auto Workers (UAW) union by the government's deadline.
According to sources, the sides cannot agree on such issues as contributions towards run retiree health care expenses, elimination of productivity bonuses and unemployment pay period, though they are said to have made progress.
Future funds
The US Treasury will be studying the survival plans for several weeks before making a decision whether to call in or extend the loans. The decision is due by the end of March.The US Treasury will be studying the survival plans for several weeks before making a decision whether to call in or extend the loans. The decision is due by the end of March.
GM and Chrysler received their first bail-outs at the end of last year, warning that without the support they risked financial ruin. GM, Ford and Chrysler have warned they risk collapse without state aidGM and Chrysler received their first bail-outs at the end of last year, warning that without the support they risked financial ruin.
Ford, the third of the "Big Three" US carmakers has yet to require any bail-outs, but says it may need funds in the future.Ford, the third of the "Big Three" US carmakers has yet to require any bail-outs, but says it may need funds in the future.
GM, Ford and Chrysler have all seen sales fall sharply in their home market.GM, Ford and Chrysler have all seen sales fall sharply in their home market.
While this decline reflects an industry-wide fall that has also hit European and Japanese carmakers in the US, the Big Three have also been criticised for not offering an attractive range of vehicles.While this decline reflects an industry-wide fall that has also hit European and Japanese carmakers in the US, the Big Three have also been criticised for not offering an attractive range of vehicles.
They have been said to be too slow in responding to the growing popularity of smaller, more fuel-efficient vehicles.They have been said to be too slow in responding to the growing popularity of smaller, more fuel-efficient vehicles.
'Expertise''Expertise'
Meanwhile, it has been reported that US President Barack Obama has decided to create a new car task force, designed to restructure the struggling industry.Meanwhile, it has been reported that US President Barack Obama has decided to create a new car task force, designed to restructure the struggling industry.
However, no formal announcement has been made so far.However, no formal announcement has been made so far.
According to Obama administration officials, the force is an alternative idea to the option of a single "car czar" with far reaching powers.According to Obama administration officials, the force is an alternative idea to the option of a single "car czar" with far reaching powers.
US Treasury Secretary Timothy Geithner and top presidential economic aide Lawrence Summers are said to head the multi-agency operation.US Treasury Secretary Timothy Geithner and top presidential economic aide Lawrence Summers are said to head the multi-agency operation.
White House spokesman Robert Gibbs said the task force would provide "a vast amount of expertise that crosses a number of governmental agencies and departments".White House spokesman Robert Gibbs said the task force would provide "a vast amount of expertise that crosses a number of governmental agencies and departments".
'Wait and see'
The Detroit carmakers are considered to be too big to fail, as their collapse would trigger serious problems for suppliers, dealers and other businesses, potentially resulting in massive job cuts.The Detroit carmakers are considered to be too big to fail, as their collapse would trigger serious problems for suppliers, dealers and other businesses, potentially resulting in massive job cuts.
Meanwhile, when asked if the White House was ruling out bankruptcy for GM and Chrysler, White House advisor said on Sunday: "I'm not going to prejudge anything."
"We'll wait and see what they have to say on Tuesday," he told Fox News.