Who can save Detroit?
« Thread Started on Dec 4, 2008, 7:32am »

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Who can save Detroit?
Posted: 07:54 AM ET
By Chris Isidore
CNNMoney.com
NEW YORK (CNNMoney.com) — Can anyone rescue the U.S. automakers?

General Motors, Ford Motor and Chrysler LLC each unveiled plans Tuesday
that detailed how they would return to profitability if they get federal loans.

Still, even with President-elect Obama and the outgoing Bush
administration saying they support providing assistance to the automakers, it’s
not clear that they will get the help they need.

The CEOs of the three firms are due to appear in front of Congress
Thursday and Friday to make their case for what’s now a $34 billion loan
package. They had originally been requesting $25 billion.

GM is asking for up to $18 billion and says it needs $4 billion of that
almost immediately to avoid running out of cash before the end of the year.

Chrysler is seeking $7 billion and has warned that it too could run out
of cash.

The situation is a bit better at Ford but it said it wants to be able to
access up to $9 billion as a backstop.

The Big Three’s last visit to Capitol Hill was nothing less than a public
relations disaster, as many members of the House and Senate denounced the CEOs
for their bad decisions and worse symbolism. Each CEO flew to Washington to ask
for help aboard their own corporate jets.

This time, GM CEO Rick Wagoner, Ford CEO Alan Mulally and Chrysler CEO
Robert Nardelli all drove to Washington in fuel-efficient hybrids. And they all
have agreed to cut their salaries to $1 a year if they get federal loans.

Will that be enough to convince a skeptical Congress to grant Detroit the
help it needs? Here’s a look at how various rescue situations for the Big Three
could play out, even if Congress says no (or simply doesn’t vote on) a bailout.