GM, Ford, Chrysler hike bailout plea to $34 billion

Detroit's beleaguered Big Three auto makers yesterday headed back to Washington to submit restructuring plans justifying their appeal for as much as $34 billion instead of the $25 billion they originally wanted, which they claim is necessary for them to survive.

After being told 'no plans, no bailout' by the US congress last week, the big three returned to Capitol Hill armed with volumes of restructuring papers, in a renewed bid for a bailout, minus their executive jets that they had flown in last time, which had invited widespread criticism.

The restructuring plan:

General Motors: In the restructuring plan, GM, which is fast running out of cash, said it required up to $18 billion in loans, which includes an immediate cash infusion of $4 billion this month to stay alive until the end of the year, hiking its need by $6 billion from what it said it would need just two weeks ago.

GM will close down nine plants, reduce staff strength by 30,000 by 2012, sell Saab, downsize the Pontiac brand, talk to dealers about the future of Saturn and reopen the contract signed with the United Auto Workers and reduce its network of dealers by 27 per cent.

GM will also ground its corporate jets and stop leasing planes as also close its operations at Detroit Metro airport while CEO Rick Wagoner will cut his salary from $2.2 million this year to $1.