Giants require 25 billion U.S. dollars to avoid bankruptcy

Giants require 25 billion U.S. dollars to avoid bankruptcy

American car manufacturers have shown some days ago, restructuring plans required by Congress in exchange for public aid worth 25 billion dollars.

To avoid bankruptcy, General Motors needs 12 billion dollars, of which 4 immediately and 8 until March 2009, plus a reserve of 6 billion, which could be used if, after a year of recession, sales would still be below the level expected. Sales in November registered a decrease of 37%, an additional argument in favor of American auto manufacturers applications.

Ford's restructuring plan of activity require 9 billion dollars and provides cancellation of all premiums and bonuses for the year end, reducing the number of concessions and the development of electric models. Although Ford has used 7.7 billion dollars of cash money in the third quarter, its worldwide sales registered a decrease of 31% in November, which is why they will cut up to 38% production capacity of North America in the first quarter of 2009.

In turn, those in Chrysler have calculated valaorea restructuring required in order to keep afloat, to 7 billion dollars needed by the end of this year.

Image of Giants require 25 billion U.S. dollars to avoid bankruptcy

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