Big Three face big week

DETROIT (WJRT) -- (12/01/08)--It is a very big week for Detroit's Big Three automakers.

Tuesday, the heads of General Motors Corp., Ford Motor Co. and Chrysler LLC will head back to Washington D.C. to convince Congress to help the automakers out of the cash crisis.

After those lengthy hearings from a few weeks ago, lawmakers told the automakers if they want the $25 billion loan, they have to go back to the Motor City and draft a new business plan.

The plans will be presented Tuesday.

Monday, GM's board was holding a second day of meetings to go over its plan.

The Detroit News is reporting that its plan will include restructuring debt, executive compensation cuts, and eliminating up to four brands.

Business Web site Bloomberg.com says people close to the GM plan are saying the automaker is studying whether to get rid of Saab, Saturn and Pontiac.

That would be in addition to the Hummer brand, which is already up for sale.

In the meantime, as part of its new strategy, Ford is considering selling off its Volvo brand.

Ford's board of directors reportedly met Monday to work on 20-page plan that doesn't ask for immediate money -- rather, a multi-billion-dollar line of credit from the federal government that it could tap into if things don't get any better in the economy by next year.

Chrysler is tweaking its plan as well. The United Auto Workers union also says it would consider new concessions to help the industry obtain federal loans.

And this past weekend, UAW President Ron Gettelfinger stressed the need for rescuing the automakers.

"This not a bailout," he said. "This is a loan -- a bridge loan that will get us through until we can take a longer term look at exactly what needs to be done in the industry."

Additional hearings on the automakers' plans are scheduled for Thursday and Friday.

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local, matt franklin

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