Thursday, February 19, 2009

US car giants seek $21bn funding

Troubled US carmakers GM and Chrysler have asked the US government for another $21.6bn (£15.2bn) in support, on top of the $17.4bn already received.

The auto giants also plan to axe 47,000 and 3,000 jobs respectively, as well as shedding a number of car models.

The moves form part of their drastic restructuring plans submitted to the US Treasury Department on Tuesday night.

It came as the United Auto Workers (UAW) union reached agreement with GM, Chrysler and Ford on contract changes.

The UAW is one of a number of stakeholders whose agreement is needed before the proposed plans can be pushed through.

Plant closures

General Motors said it would try to borrow up to $16.6bn more from the government, on top of the $13.4bn it has already received.

Its plan includes cutting 47,000 jobs and closing five more US factories, with about 26,000 of the cuts taking place outside the US.

Read the full story at BBC News


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