Chrysler and GM Submit Viability Plans, Ask For More Money

GM and Chrysler submitted rough drafts of their viability plans to the U.S. Treasury Department Tuesday. Yesterday’s announcements were intended to be updates to prove that the loans are being spent wisely and show that the automakers are on track for March 31, when official plans are due. 

In addition to detailing future model lineups and cost cuts, GM and Chrysler asked for an additional $18.6 billion in loans, citing extraordinarily poor sales in December and January and predicting even worse 2009 sales than were previosuly anticipated. 

GM is asking for $16.6 billion in addition to the $13.4 billion loan already agreed to, for a $30 billion total. According to Autoblog, $4.5 billion of that would be used to pay back a line of credit due in 2011.  Chrysler is requesting just $2 billion on top of the $7 billion in the original agreement.  

If the Treasury Department agrees to loan out this extra money, it will bring the total amount owed by the two automakers to $39 billion.

Both companies plan to cut more jobs in order to bring production in line with projected car sales.  Chrysler is planning to cut 3,000 more workers and GM announced that it will close 14 manufacturing facilities by 2012.