Detroit 3 Submit Business Plans to Congress; Ask for $34 Billion in Aid - aftermarketNews

Detroit 3 Submit Business Plans to Congress; Ask for $34 Billion in Aid

In their presentations, both Chrysler and GM indicated that they could collapse by the end of the month without financial assistance.

WASHINGTON, D.C. – A stipulation in their request for financial support, Ford, General Motors and Chrysler yesterday submitted to Congress their business plans, which included detailed roadmaps for returning to profitability.

In their presentations, both Chrysler and GM indicated that they could collapse by the end of the month without financial assistance.

GM said it needs $4 billion immediately, just to continue operating through the end of the year, and needs $18 billion in loans, in total. Chrysler is asking for $7 billion by Dec. 31, according to a report from the Wall Street Journal.

Ford is asking for access to up to $9 billion in bridge financing, but reiterated that it hopes to complete its transformation without accessing the loan should Congress agree to make the funds available.

Despite the serious global economic downturn, Ford said it does not anticipate a liquidity crisis in 2009 — barring a bankruptcy by one of its domestic competitors or a more severe economic downturn that would further cripple automotive sales and create additional cash challenges.

"For Ford, government loans would serve as a critical backstop or safeguard against worsening conditions, as we drive transformational change in our company," said Ford President and CEO Alan Mulally, testifying before Congress this week.

All three automakers promised to consolidate manufacturing and speed up production of higher-mileage vehicles, the Journal reported. GM and Ford also said they will eliminate certain brands.

You May Also Like

Mullen Automotive Locks in First US Dealer

RMA is the first dealer group partner for Mullen’s commercial EV lineup, which is set to launch in the U.S. in 2023.

Emerging electric vehicle manufacturer Mullen Automotive, Inc. announced Randy Marion Automotive (RMA) as the first dealer group partner for Mullen’s commercial EV lineup, which is set to launch in the U.S. in 2023.

Mullen’s commercial EV lineup includes Class 1-3 cargo van and cab chassis offerings and Bollinger Motors Class 4-6 chassis products.

NTEA Supports Catalytic Converter Anti-Theft Legislation

The Preventing Auto Recycling Theft Act was introduced by U.S. Senators Amy Klobuchar (D-MN) and Ron Wyden (D-OR).

MEMA: R&D Fix Vital for US Competitiveness 

MEMA and member companies sign a coalition letter in support of fixing the R&D tax credit.

Insurers Show Support for Right to Repair

The American Property Casualty Insurance Association calls on Congress to pass the SMART Act and the REPAIR Act.

CAR Coalition: Poll Shows Americans Want Auto Repair Choice

Congress sets hearing on Right to Repair.

Other Posts

Volvo Receives Record Order for Electric Trucks in Australia

The trucks will hit the streets of Sydney during the first quarter of 2023. 

Stellantis and Its US Dealerships Move Toward Electrification

Company partners with Future Energy offering individual, comprehensive evaluations and EV integration services.

Tenneco to Supply Solutions for Rivian R1T and R1S EVs

Monroe Intelligent Suspension and Clevite Elastomer Products selected for Rivian’s light truck and SUV models.

GM Signs Long-Term Nickel Supply Agreement with Vale Canada

This agreement secures for GM a supply of nickel sulfate from a U.S. free-trade partner to support its fast-growing EV production needs in North America.