Automakers ask for more help

General Motors and Chrysler pleaded with the federal government to shell out an additional $21 billion, on top of the $17.4 billion in bailout funds they’ve already received.

General Motors and Chrysler this week said they were perilously close to collapse and pleaded with the federal government to shell out an additional $21 billion, on top of the $17.4 billion in bailout funds they’ve already received. In return for a new federal infusion, the two companies offered drastic cuts in operations and concessions from their unions, creditors, and suppliers. GM said it would lay off an additional 47,000 workers, close five plants, and reduce the number of its brands from eight to four. Chrysler said it would lay off 3,000 workers and discontinue three models, including the PT Cruiser.

President Obama last week decided against appointing a “car czar” to oversee the industry, opting instead to form a task force within the White House. He named Ron Bloom, a Wall Street advisor to unions in troubled industries, as his point man in negotiations with the automakers. “More will be required from everyone involved,” said Obama spokesman Robert Gibbs—“creditors, suppliers, dealers, labor, and auto executives themselves.”

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