The Big Three automakers are scrambling to approve plans to present to skeptical legislators that will provide a roadmap for how they plan to turn their companies around and make them profitable again if the government provides help to get them through the difficult times. Reuters reports:
The board of General Motors Corp met on Sunday to review a restructuring plan intended to cut costs and win support for up to $12 billion in emergency funding from the U.S. government, a person familiar with the deliberations said.
Along with rivals Ford Motor Co and Chrysler LLC, GM is rushing to complete the business plans demanded by Congress as a condition of considering a $25-billion rescue package for the embattled industry.
When the CEOs of the three auto companies appeared before Congress to ask for the rescue package two weeks ago, they were widely criticized for being unprepared and tone deaf to public concerns over executive salaries. One legislator slammed the auto industry leaders for flying to Washington in private jets while pleading poverty.
The Democratic leadership in the House and Senate wrote a letter to all three chief executives demanding that they come back to Congress with a “credible restructuring plan” to show lawmakers that any rescue package would lead to a stronger auto industry in the future.
UAW President Ron Gettelfinger has said that the union is willing to make some concessions to help ease labor costs and help the companies survive, but only if the executives also agree to cuts in salary and bonuses.