GM's bid for federal money: 12 billion buckaroos

Are we really surprised that General Motors request is for 12 billion dollars? Of course not. Considering the things that have lead to the demise to GM, 12 billion actually seems a little "surprising" relatively speaking. Here's some details from EGMCartech:

GM said that it is requesting loans of up to $12 billion to provide liquidity through Dec. 31, 2009. GM is asking for at least $4 billion in Dec. 2008 and is also request a $6 billion line of credit in case industry conditions get worse. The automaker said that it plans on repaying the loans as soon as 2011 and said that any draws will be conditioned on achieving a restructuring plan that includes:

- Increased production of fuel-efficient vehicles and energy-saving technologies;
- Rationalization of brands, models and retail outlets;
- Reduced wage and benefit costs, including further reductions in executive compensation;
- Significant capital structure restructuring;
- Further consolidation in manufacturing operations.

Actually, I will say that I think GM's plan including the emergency line of credit is a bit more plausible than Chrysler's, although at least Chrysler gave some hard figures in terms of a gradual ascent back into the black that seemed to make a bit more sense that GM's statements that don't have as much ooomph behind "significant capital structure restructuring" overall; there was a blurb about the Volt up front, and that is obviously the main factor in what GM is counting on becoming profitable. The company's statement to start repayment of the loan by 2011 is commendable.

Stay tuned...

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GM's bid for federal money: 12 billion buckaroos

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