Troubled US automaker GM said it might need as much as $100 billion in financing from the government if it were to go through the traditional bankruptcy process. Rick Wagoner, GM's chairman and chief executive, said the bankruptcy scenarios are "risky" and "costly," and would only be pursued as a last resort. Instead GM wants $16.6 billion more in bailout loans, which would take the federal government loans to GM to a total of $30 billion. GM also said it was in talks with Germany, the U.K., Sweden, Canada and Thailand to secure up to $6 billion in financial support.
GM said it now plans to phase out its Hummer brand this year and Saturn in 2011 if no alternatives arise. The company also is scaling back Pontiac and trying to sell Saab, its Swedish brand.
GM also said it needs at least $7.7 billion in loans from the Department of Energy to develop fuel-efficient technology. Under the plan submitted Tuesday, GM said it can break even once U.S. vehicle sales hit a seasonally adjusted rate of 11.5 million to 12 million car and truck sales. That compares with 9.5 million as of January.
Wall Street Journal
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