GM and Chrysler submit Recovery Plans to Treasury

In the plans they submitted to the government, GM and Chrysler say they need up to $21.6 Billion more in bailout loans. The plans included possible scenarios in the event that either would have to file for bankruptcy protection.

GM has received $13.4 billion so far, and its plan states it needs a total of $30 billion (an additional $16.6 billion). GM also says it needs $7.7 billion in loans from the Dept. of Energy to develop fuel-efficient technology. GM is also seeking over $7 billion from a group of European countries.

Chrysler has received $4 billion so far, and says it needs $5 billion more.

Other items of note:

• GM plans to eliminate 47,000 jobs worldwide. 26,000 of these would be outside of the US.
  
• GM plans to eliminate thousands of dealerships
  
• GM, Chrysler and Ford reached tentative agreements with the UAW on a range of labor cost reductions. These include changes in work rules and cuts in "substitute pay".
  
• The union and automakers are still at odds over how to fund a trust to cover health care costs for retired union workers. The automakers want to use stock for a portion of their cash obligations for this fund. (I'm assuming the UAW wants cold, hard cash.)
  
• The automakers are still working with their bondholders on how to restructure the $29 billion in debt owed to them.
  

Here's a link to an article titled 9 Bailout Surprises from GM and Chrysler.

Are you really surprised?