Chrysler, UAW continue to work toward new contract

Chrysler and the UAW continue to meet Sunday, according to the union. They also met Saturday. Talks between the company and the UAW broke down last Wednesday when the two sides could not agree on the final economic terms, including health care costs. But they resumed Friday with CEO Sergio Marchionne and UAW President Bob King at the table..--Chrysler, UAW continue to work toward new contract

Chrysler, UAW hold 'productive discussions' on contract

DETROIT -- UAW President Bob King and Chrysler CEO Sergio Marchionne met Friday as the union and the company continued "productive discussions," the UAW said....more

UAW shifts focus to Chrysler, Marchionne

DETROIT, Sept 21 (Reuters) - With a tentative agreement with General Motors Co (GM.N) in hand, the United Auto Workers union shifts its focus to Chrysler Group LLC where a one-week contract extension will expire late Wednesday....More

Fiat won't risk rating downgrade to buy Chrysler stake, Marchionne says

Fiat CEO Sergio Marchionne said the Italian automaker won't risk a credit-rating downgrade to gain full ownership of Chrysler and he isn't in talks to acquire the UAW retiree health-care trust fund's stake in the U.S. automaker.Fiat won't risk rating downgrade to buy Chrysler stake, Marchionne says

UAW focusing on talks with Chrysler

DETROIT – The United Auto Workers union has placed concession talks with General Motors Corp. on the back burner as it tries to reach a deal with Chrysler LLC before an April 30 government deadline, two people briefed on the negotiations said Thursday.

The decision likely means that any deal with Chrysler will set the pattern for concessions granted to GM as both companies try to show the government they have cut costs enough to get more government loans.

The people, who spoke on condition of anonymity because the talks are private, said the union is focusing on Chrysler because its government deadline to cut labor costs and swap debt for equity is just two weeks away.

Chrysler also has to ink an alliance deal with Fiat Group SpA by April 30 to get more government aid. Without further help, Chrysler likely would be auctioned off in pieces under bankruptcy court supervision.

GM's government deadline is June 1, but the Obama administration said it will provide bankruptcy financing if the company can't successfully restructure outside of court.

GM spokeswoman Sherrie Childers Arb and UAW spokeswoman Christine Moroski would not comment on the negotiations. Chrysler spokeswoman Shawn Morgan would not comment beyond a statement that the company has a goal is to reach a conclusion by April 30.

The Canadian Auto Workers union has said that it plans to resume negotiations with Chrysler on Monday after Fiat CEO Sergio Marchionne said the Italian automaker will walk away from the proposed tie-up unless Chrysler's unions agree to major cost cuts.

Canadian Industry Minister Tony Clement said Thursday that the CAW must make significant concessions to ensure Chrysler survives. Without a deal in the next two weeks, the Canadian government will also shut down its support for the troubled automaker, Clement said.

Chrysler, GM and Ford Motor Co. all reached concession deals with the UAW in February to limit overtime, cut lump-sum cash bonuses and eliminate cost-of-living pay increases. The union also agreed to suspend the jobs bank in which laid-off workers are paid most of their wages.

Workers at Ford, which is not receiving government aid, ratified their deal, but the GM and Chrysler agreements were never presented to union members because they got hung up on funding for a union-run trust that will take over retiree health care expenses next year.

Then, the Obama administration said last month that the cuts outlined in GM and Chrysler's viability plans didn't go far enough, and the union would have to give up more. Just how much more has not been stated publicly.

GM has received $13.4 billion in government loans and may need more money this month as it tries to survive the worst auto sales downturn in 27 years. Chrysler has received $4 billion and may also need more funding to stay alive until its deadline.

The government said it will lend Chrysler up to $6 billion more if it completes a deal with Fiat and gains concessions from unions and debtholders.

But creditors that hold $6.9 billion in Chrysler debt — mostly banks and hedge funds — have rejected an offer from the Treasury Department to erase the debt for $1 billion. They are preparing a counteroffer that likely will include more cash and an equity stake in the company.

A committee representing the holders of $28 billion in GM bonds is awaiting an offer from the company that aims to slash its unsecured debt by at least two-thirds.

Associated Press Writer Rob Gillies in Toronto contributed to this report.

GM UAW News On Concessions

The latest news reported by Fox 2 Detroit:

GM will not ask the UAW for wages concessions.

Probably due to the fact that the last contract in 2007 included wages concessions. The new UAW assembly employees will earn around $14 dollars an hour.
Remember the new car czar will have to approve the companies plan. More than likely the czar will demand pay cuts.

Big 3 pension gap grows

Feds warn of risks in rising $41B shortfall
David Shepardson / Detroit News Washington Bureau
WASHINGTON -- The outgoing director of the U.S. Pension Benefit Guaranty Corp. warned Friday that Detroit's Big Three automakers face a $41 billion pension shortfall.

While the companies continue to meet government funding requirements, the situation raises concerns for the agency, which takes over pensions when companies fail, given the financial problems facing the struggling auto industry.

"We're not trying to tell people that the pension house is on fire," Charles E.F. Millard said in an interview. "The point is that in many ways this has a similar look to other situations, such as a Bethlehem Steel."

The pension corporation assumed the pensions of 95,000 people at Bethlehem Steel in 2002, when the company filed for bankruptcy, and ended up on the hook for $3.7 billion in pension costs. That plan was underfunded by $4.2 billion.

Millard said policymakers need "a clear understanding of the magnitude of the numbers and the risks" associated with the automakers.

In total, the Big Three pensions cover nearly 1.3 million people. If all three automakers were to collapse and turn their plans over to the pension corporation, the agency estimates it would pay out $13 billion of the $41 billion, because of limits set by Congress on how much the pension corporation can cover. The agency generally has a yearly cap of $54,000 in benefits for people who are 65.

A $13 billion payout would more than double the agency's $11 billion deficit.

"It is certainly possible that none of these companies ever files for bankruptcy," Millard said. "It is certainly possible that they all do." He said the risk to the agency "is significantly greater than it was six or seven months ago."

As of Nov. 30, the pension plans for hourly and salaried workers at General Motors Corp. had a combined deficit of $20 billion and Ford Motor Co. had an $11.7 billion deficit, according to Millard; Chrysler LLC had a $9.3 billion deficit as of Jan. 1. ...More

The UAW Can No Longer Strike! If So All Bailout Money is to be returned.

GM, Chrysler's federal loan deals bar strikes

DETROIT – Provisions of General Motors' and Chrysler's $17.4 billion in federal loans automatically places them in default if union workers go on strike.

A General Motors Corp. filing this week with the Securities and Exchange Commission detailed the provision as part of its $13.4 billion in federal loans.

A person briefed on Chrysler LLC's $4 billion loan, who didn't want to be identified because the company is in talks with the United Auto Workers union about concessions, confirmed Thursday that the Chrysler deal also has a similar provision.

The UAW isn't a party to the deal and hasn't threatened a strike, its most potent weapon against the Detroit automakers.

The UAW and the automakers have a Feb. 17 deadline to agree to concessions to lower labor costs.

Autoworkers Union Keeps $6 Million Golf Course for Members at $33 Million Lakeside Retreat

The United Auto Workers may be out of the hole now that President Bush has approved a $17 billion bailout of the U.S. auto industry, but the union isn't out of the bunker just yet.

Even as the industry struggles with massive losses, the UAW brass continue to own and operate a $33 million lakeside retreat in Michigan, complete with a $6.4 million designer golf course. And it's costing them millions each year....More

UAW Auto Workers To Hold Emergency Meeting

Auto Workers To Hold Emergency Meeting In Detroit To Help Big 3 Get Government Loans

(CBS/AP) Local United Auto Workers leaders from across the U.S. will hold an emergency meeting in Detroit on Wednesday to discuss concessions the union could make to help auto companies get government loans.

UAW leaders called the meeting Monday night in an e-mail, obtained by The Associated Press, to local union presidents and bargaining chairmen.

Among the subjects to be discussed at the meeting will be the possibility of restructuring the union-administered health care fund so that the automakers can delay payments to the multibillion-dollar fund, according to a person familiar with the matter.

The union leaders will also discuss potentially eliminating the jobs bank, in which laid-off workers keep receiving most of their pay. The person spoke on condition of anonymity because the details of the talks haven't been finalized.....Read more

UAW considers reopening contracts

Union summons leaders to Detroit as firms give survival plans to Congress today.
David Shepardson / Detroit News Washington Bureau

WASHINGTON -- As Detroit's Big Three are poised to present their business plans to Congress today justifying quick approval of $25 billion in emergency loans, the United Auto Workers has called an emergency meeting in Detroit on Wednesday during which the union could consider reopening its 2007 contracts with the automakers.

Union leaders representing workers at General Motors Corp., Ford Motor Co. and Chrysler LLC plants across the country have been called to Detroit for the session, according to sources familiar with the plan.

One local UAW official who has been invited to the meeting expects the union leaders are going to be asked for their support to reopen the 2007 contracts and to agree to concessions that would help make the automakers financially viable.

The business plans GM, Ford and Chrysler have prepared for Congress include seeking additional givebacks from the UAW as one way to cut costs, according to sources with knowledge of the plans.

A person familiar with one automaker's plan said a variety of topics are being explored. Key issues include reopening the contract, eliminating the controversial jobs bank that still pays workers even when they are laid off, and how much and how quickly the automakers will contribute to a trust fund to be run by the UAW that will take over responsibility for retiree health care beginning in 2010. The health care trust was a key part of the landmark contracts negotiated last year.

UAW spokesman Roger Kerson could not be reached for comment late Monday.

Harley Shaiken, a labor expert and professor at the University of California, Berkeley, was unaware of Wednesday's meeting but was not surprised it was called.

"We truly are in uncharted waters, the stakes are enormous and when you have a situation like that, to lead effectively, you need all the local people aware of the choices and hearing directly from the top leadership what the options are."

Wednesday's meeting was first reported by Bloomberg News.

UAW President Ron Gettelfinger was criticized for the jobs bank during congressional hearings last month about giving the automakers federal aid. The number of workers in the programs has been greatly reduced under tougher time restrictions in the 2007 contract but the benefit is derided as a relic of a bygone age that erodes the automakers' ability to compete and that they can no longer afford. Gettelfinger recently said Ford has taken 40,000 workers out since 2005 and GM has removed about 47,000. About 3,500 workers are in the programs today, he said.

"The jobs bank has become the poster boy of what's gone wrong with the industry," Shaiken said. "The union knows it's the reality they have to deal with. To defend the jobs bank is just not done in the current environment."....More

Chrysler Only has enough money to last 6 months!

With the Internet a buzz on the massive automotive third quarter losses, Washington better act fast (if At All)

The American auto makers can not wait 12 months for the 25Billion set aside from the Federal Government for retooling plants to build energy efficient vehicles. If they have to wait a year, they won't make it!

Latest for Reuters-

Chrysler cash drains away as crisis deepens: sources

By Poornima Gupta and Kevin Krolicki

DETROIT (Reuters) - Chrysler LLC is rapidly burning through cash and being driven to prepare for a possible break-up if it can't clinch a merger with General Motors Corp or get government funding needed to ride out the economic crisis, people with knowledge of the situation said.

Without new funding or a wrenching restructuring, executives have raised concern about the auto maker's ability to finance its operations from existing cash beyond the first half of 2009, said the sources, who were not authorized to discuss Chrysler's performance.

Chrysler has had to pay out over $100 million a month to support strained suppliers on top of a total $200 million support to sales through dealers in August and September as it suspended vehicle lease financing, the sources said.
The $11.7 billion the struggling automaker said it had as of end-June has seen a substantial decline because of the company's deteriorating performance marked by a 35 percent slide in October sales and increasing cash incentives, they said.

Chrysler and its owner Cerberus Capital Management LP declined to comment.
Cerberus and GM had agreed last month on the broad terms of a merger of Chrysler's loss-making auto operations and those of its crosstown rival but the deal foundered when the Bush administration rebuffed a request for some $10 billion to support it, sources have said.
That setback has put the focus on winning support for a broader federal rescue package for GM, Chrysler, Ford Motor Co and their suppliers that the industry argues would save jobs and protect benefits for retirees.

But Chrysler has been forced to consider a more drastic set of backup plans that could include selling off key business lines -- including Jeep, considered its most valuable brand. It may also outsource its finance and human resources, sources said.
As a step toward that hard-landing scenario, the automaker is moving to split up its replacement parts business based on brand so that its Chrysler, Jeep and Dodge operations could be completely separate, one source briefed on that plan said.
That could make it easier to sell off an individual brand.
LOBBYING WASHINGTON
Chrysler Chief Executive Bob Nardelli joined GM CEO Rick Wagoner and Ford CEO Alan Mulally on Thursday in meetings with U.S. House Speaker Nancy Pelosi and Senate Majority Leader Harry Reed.
The three automakers lobbied the Democratic lawmakers -- who increased their power in Tuesday's election that also saw Barack Obama elected president -- for up to $50 billion in federal aid, sources said.
The push for aid has been accompanied by increasingly dire warnings from industry executives and their political allies about the cost of inaction and the risk of a failure that would cost tens of thousands of manufacturing jobs....More

Stupid Daily News---Political Roast----Lingerie Football Pics

Chrysler Only has enough money to last 6 months!

With the Internet a buzz on the massive automotive third quarter losses, Washington better act fast (if At All)

The American auto makers can not wait 12 months for the 25Billion set aside from the Federal Government for retooling plants to build energy efficient vehicles. If they have to wait a year, they won't make it!

Latest for Reuters-

Chrysler cash drains away as crisis deepens: sources

By Poornima Gupta and Kevin Krolicki

DETROIT (Reuters) - Chrysler LLC is rapidly burning through cash and being driven to prepare for a possible break-up if it can't clinch a merger with General Motors Corp or get government funding needed to ride out the economic crisis, people with knowledge of the situation said.

Without new funding or a wrenching restructuring, executives have raised concern about the auto maker's ability to finance its operations from existing cash beyond the first half of 2009, said the sources, who were not authorized to discuss Chrysler's performance.

Chrysler has had to pay out over $100 million a month to support strained suppliers on top of a total $200 million support to sales through dealers in August and September as it suspended vehicle lease financing, the sources said.
The $11.7 billion the struggling automaker said it had as of end-June has seen a substantial decline because of the company's deteriorating performance marked by a 35 percent slide in October sales and increasing cash incentives, they said.

Chrysler and its owner Cerberus Capital Management LP declined to comment.
Cerberus and GM had agreed last month on the broad terms of a merger of Chrysler's loss-making auto operations and those of its crosstown rival but the deal foundered when the Bush administration rebuffed a request for some $10 billion to support it, sources have said.
That setback has put the focus on winning support for a broader federal rescue package for GM, Chrysler, Ford Motor Co and their suppliers that the industry argues would save jobs and protect benefits for retirees.

But Chrysler has been forced to consider a more drastic set of backup plans that could include selling off key business lines -- including Jeep, considered its most valuable brand. It may also outsource its finance and human resources, sources said.
As a step toward that hard-landing scenario, the automaker is moving to split up its replacement parts business based on brand so that its Chrysler, Jeep and Dodge operations could be completely separate, one source briefed on that plan said.
That could make it easier to sell off an individual brand.
LOBBYING WASHINGTON
Chrysler Chief Executive Bob Nardelli joined GM CEO Rick Wagoner and Ford CEO Alan Mulally on Thursday in meetings with U.S. House Speaker Nancy Pelosi and Senate Majority Leader Harry Reed.
The three automakers lobbied the Democratic lawmakers -- who increased their power in Tuesday's election that also saw Barack Obama elected president -- for up to $50 billion in federal aid, sources said.
The push for aid has been accompanied by increasingly dire warnings from industry executives and their political allies about the cost of inaction and the risk of a failure that would cost tens of thousands of manufacturing jobs....More

Stupid Daily News---Political Roast----Lingerie Football Pics

Fox News-Pelosi, Auto Execs and UAW to Meet

DETROIT — House Speaker Nancy Pelosi will sit down Thursday with the leaders of Detroit's automakers and their workers as the industry seeks federal funding needed to survive a dramatic downturn.

Two people familiar with plans for the meeting said the top executives of General Motors Corp., Ford Motor Co. and Chrysler LLC, along with the union's president, will meet with Pelosi to talk about the impact of the credit crisis and the industry's access to government funding.

She'll meet in Washington with Bob Nardelli of Chrysler, Alan Mulally of Ford, Rick Wagoner of GM and United Auto Workers President Ron Gettelfinger, the people familiar with the meeting plans said.

The officials spoke on the condition of anonymity because the meeting is private.

Pelosi has called for Congress to enact a stimulus program to shore up the sinking economy during its lame-duck session.

News of the meeting came Wednesday as Detroit automakers and their allies in Congress said Barack Obama's victory could help U.S. automakers line up federal funding.

Obama made it clear during his campaign that he understood the automakers' problems and would work to preserve the industry, U.S. Sen. Carl Levin, D-Mich., said Wednesday.

"I'm very optimistic that we're going to have a fighter in the White House for manufacturers, and that's what we need," Levin said.

Levin said he was told Wednesday by Jason Furman, Obama's senior economic adviser, that government aid is atop Obama's agenda. Levin said Furman did not commit to a specific funding path for the industry but was supportive.

Obama has said he would meet with industry leaders and the United Auto Workers immediately to talk about helping automakers, but a meeting has not yet been scheduled.

Levin noted that Obama expressed support for doubling an Energy Department loan program for automakers to develop fuel-saving technology to $50 billion from $25 billion.

Michigan's other senator, Democrat Debbie Stabenow, said Senate Majority Leader Harry Reid, D-Nev., appears open to supporting another $25 billion in flexible funding.

Reid, she said, appeared open to supporting "whatever we feel is the best approach for the auto industry and can get the consensus in the House to pass."

Levin said members of Michigan's congressional delegation would pursue options to help the industry, including the $700 billion Wall Street bailout or access to Federal Reserve capital.

On Wednesday night, the Department of Energy released rules for getting the $25 billion in loans that could get money into automakers' hands by the end of the year.

Obama's victory over Republican John McCain came just three days before General Motors Corp. and Ford Motor Co. are to release their third-quarter results, which almost certainly will show billions in losses and cash burn rates that will push the companies closer to emptying their treasuries if auto sales don't bounce back soon.

Further job cuts by both automakers are expected on Friday. Analysts say GM could close more plants but Ford has said it will likely do temporary factory shutdowns and overtime cuts at some of its car plants. Some new engines and models will be delayed.

Troy Clarke, GM's president for North America, said in remarks prepared for a speech Wednesday night in Detroit that the next 100 days are critical for GM and the auto industry.

The company, he said, made cuts to save cash earlier this year, but more are coming.

"I'd like to say we're done, but once again, market and economic conditions have continued to decline," he said in a text of the speech provided by GM. "We must be adaptable and ready to make needed changes quickly, particularly over the next 100 days."

GM is talking with Chrysler majority owner Cerberus Capital Management LP about GM acquiring Chrysler. GM reportedly is after Chrysler's roughly $11 billion in cash and is seeking federal aid to make the deal happen.

A person briefed on the GM-Chrysler talks said Wednesday that no announcement of a deal is imminent because much of it hinges on federal aid. The person asked not to be identified because the talks are private.

A further indication of GM's woes came Wednesday when its auto financing arm, GMAC Financial Services, reported a $2.52 billion third-quarter loss. GMAC is 51 percent owned by private equity firm Cerberus, while Detroit-based GM holds the rest.

Also Wednesday, House Speaker Nancy Pelosi again called for a lame-duck session of Congress to enact a stimulus program to shore up the sinking economy. It was unclear whether aid for the troubled automakers would be part of that package.

Automakers say some sort of government funding is necessary to bail out the troubled industry. They have been lobbying to speed up loans from the Energy Department pot, and for access to part of the $700 billion Wall Street bailout plan and perhaps other funding.

Also on Wednesday, the Center for Automotive Research published a report estimating that about 2.5 million jobs across the economy would disappear in the first year if the U.S. auto industry shrinks by 50 percent.

Only 239,000 of those job losses would be at the Detroit Three — the remainder would be at parts suppliers and related industries, the Ann Arbor-based center said.

Cerberus Chairman John Snow said Wednesday that Obama needs a bipartisan plan to counter the worst economic downturn in about 50 years.

"What we need is to make sure that a vital industry like autos ... which is such a big part of the overall economy, doesn't lead us into a deeper and harsher downturn," Snow, who served as treasury secretary under President Bush from 2003 to 2006, said in an interview on the CNBC cable channel. "The collapse of the auto industry at this time would be devastating for a new president."

GM is burning through more than $1 billion per month and analysts have said the company could reach the minimum cash levels required to operate sometime next year. They say Chrysler could go into bankruptcy next year if it doesn't take on a partner or isn't acquired by another automaker, raising the specter of tens of thousands of lost jobs or the need for the government to take over the company's pension obligations.

GMAC has said it is having discussions with U.S. federal regulators about becoming a bank holding company, a move that could help it access government funding and be part of a potential acquisition of Chrysler.

A GM-Chrysler deal could lead to job cuts of 24,000 to 35,000, according to industry analysts. They have predicted GM could close half of Chrysler's 14 manufacturing plants and consolidate engineering, design, finance and other operations. Another 50,000 auto supplier jobs could also be lost.

Most of the losses would be in Michigan, but analysts say the alternative of Chrysler being sold in pieces would result in many more job cuts than a GM acquisition....Article-FoxNews
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Fox News-Pelosi, Auto Execs and UAW to Meet

DETROIT — House Speaker Nancy Pelosi will sit down Thursday with the leaders of Detroit's automakers and their workers as the industry seeks federal funding needed to survive a dramatic downturn.

Two people familiar with plans for the meeting said the top executives of General Motors Corp., Ford Motor Co. and Chrysler LLC, along with the union's president, will meet with Pelosi to talk about the impact of the credit crisis and the industry's access to government funding.

She'll meet in Washington with Bob Nardelli of Chrysler, Alan Mulally of Ford, Rick Wagoner of GM and United Auto Workers President Ron Gettelfinger, the people familiar with the meeting plans said.

The officials spoke on the condition of anonymity because the meeting is private.

Pelosi has called for Congress to enact a stimulus program to shore up the sinking economy during its lame-duck session.

News of the meeting came Wednesday as Detroit automakers and their allies in Congress said Barack Obama's victory could help U.S. automakers line up federal funding.

Obama made it clear during his campaign that he understood the automakers' problems and would work to preserve the industry, U.S. Sen. Carl Levin, D-Mich., said Wednesday.

"I'm very optimistic that we're going to have a fighter in the White House for manufacturers, and that's what we need," Levin said.

Levin said he was told Wednesday by Jason Furman, Obama's senior economic adviser, that government aid is atop Obama's agenda. Levin said Furman did not commit to a specific funding path for the industry but was supportive.

Obama has said he would meet with industry leaders and the United Auto Workers immediately to talk about helping automakers, but a meeting has not yet been scheduled.

Levin noted that Obama expressed support for doubling an Energy Department loan program for automakers to develop fuel-saving technology to $50 billion from $25 billion.

Michigan's other senator, Democrat Debbie Stabenow, said Senate Majority Leader Harry Reid, D-Nev., appears open to supporting another $25 billion in flexible funding.

Reid, she said, appeared open to supporting "whatever we feel is the best approach for the auto industry and can get the consensus in the House to pass."

Levin said members of Michigan's congressional delegation would pursue options to help the industry, including the $700 billion Wall Street bailout or access to Federal Reserve capital.

On Wednesday night, the Department of Energy released rules for getting the $25 billion in loans that could get money into automakers' hands by the end of the year.

Obama's victory over Republican John McCain came just three days before General Motors Corp. and Ford Motor Co. are to release their third-quarter results, which almost certainly will show billions in losses and cash burn rates that will push the companies closer to emptying their treasuries if auto sales don't bounce back soon.

Further job cuts by both automakers are expected on Friday. Analysts say GM could close more plants but Ford has said it will likely do temporary factory shutdowns and overtime cuts at some of its car plants. Some new engines and models will be delayed.

Troy Clarke, GM's president for North America, said in remarks prepared for a speech Wednesday night in Detroit that the next 100 days are critical for GM and the auto industry.

The company, he said, made cuts to save cash earlier this year, but more are coming.

"I'd like to say we're done, but once again, market and economic conditions have continued to decline," he said in a text of the speech provided by GM. "We must be adaptable and ready to make needed changes quickly, particularly over the next 100 days."

GM is talking with Chrysler majority owner Cerberus Capital Management LP about GM acquiring Chrysler. GM reportedly is after Chrysler's roughly $11 billion in cash and is seeking federal aid to make the deal happen.

A person briefed on the GM-Chrysler talks said Wednesday that no announcement of a deal is imminent because much of it hinges on federal aid. The person asked not to be identified because the talks are private.

A further indication of GM's woes came Wednesday when its auto financing arm, GMAC Financial Services, reported a $2.52 billion third-quarter loss. GMAC is 51 percent owned by private equity firm Cerberus, while Detroit-based GM holds the rest.

Also Wednesday, House Speaker Nancy Pelosi again called for a lame-duck session of Congress to enact a stimulus program to shore up the sinking economy. It was unclear whether aid for the troubled automakers would be part of that package.

Automakers say some sort of government funding is necessary to bail out the troubled industry. They have been lobbying to speed up loans from the Energy Department pot, and for access to part of the $700 billion Wall Street bailout plan and perhaps other funding.

Also on Wednesday, the Center for Automotive Research published a report estimating that about 2.5 million jobs across the economy would disappear in the first year if the U.S. auto industry shrinks by 50 percent.

Only 239,000 of those job losses would be at the Detroit Three — the remainder would be at parts suppliers and related industries, the Ann Arbor-based center said.

Cerberus Chairman John Snow said Wednesday that Obama needs a bipartisan plan to counter the worst economic downturn in about 50 years.

"What we need is to make sure that a vital industry like autos ... which is such a big part of the overall economy, doesn't lead us into a deeper and harsher downturn," Snow, who served as treasury secretary under President Bush from 2003 to 2006, said in an interview on the CNBC cable channel. "The collapse of the auto industry at this time would be devastating for a new president."

GM is burning through more than $1 billion per month and analysts have said the company could reach the minimum cash levels required to operate sometime next year. They say Chrysler could go into bankruptcy next year if it doesn't take on a partner or isn't acquired by another automaker, raising the specter of tens of thousands of lost jobs or the need for the government to take over the company's pension obligations.

GMAC has said it is having discussions with U.S. federal regulators about becoming a bank holding company, a move that could help it access government funding and be part of a potential acquisition of Chrysler.

A GM-Chrysler deal could lead to job cuts of 24,000 to 35,000, according to industry analysts. They have predicted GM could close half of Chrysler's 14 manufacturing plants and consolidate engineering, design, finance and other operations. Another 50,000 auto supplier jobs could also be lost.

Most of the losses would be in Michigan, but analysts say the alternative of Chrysler being sold in pieces would result in many more job cuts than a GM acquisition....Article-FoxNews
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UAW hires Girsky as adviser on federal bailout, GM-Chrysler

The UAW has hired veteran Wall Street consultant Stephen Girsky to advise the union on automakers' federal bailout talks and a possible tie-up between General Motors and Chrysler LLC, Automotive News learned today.

Girsky, 46, is a former senior auto analyst with Morgan Stanley who became an adviser to GM CEO Rick Wagoner. He left GM in 2006 after less than a year.
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UAW hires Girsky as adviser on federal bailout, GM-Chrysler

The UAW has hired veteran Wall Street consultant Stephen Girsky to advise the union on automakers' federal bailout talks and a possible tie-up between General Motors and Chrysler LLC, Automotive News learned today.

Girsky, 46, is a former senior auto analyst with Morgan Stanley who became an adviser to GM CEO Rick Wagoner. He left GM in 2006 after less than a year.
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GM CHRYSLER MERGER-Will The Feds Help?

While all parties involved with the General Motors and Chrysler merger await any news, the auto analyst believe the deal is coming.

The rumors and reports indicate the deal is done, but still nothing official!

It seems the merger is hinging on an influx of cash from the Treasury to help facilitate the merger,But will the Fed's give up billions with nothing in return?

When the federal Government bailed out Chrysler in the 1980's the UAW had to give up benefits and pay cuts to get the federal aid.

Will GM UAW workers have to give up pay and benefits to save their failing company?

Will thousands of jobs be lost from Chrysler and GM?

This deal is either going to be to complex to help everyone or to simple to believe it happened!

All the auto sources believe we will hear something by 11/1/08!

Stupid Daily News---Political Roast----Lingerie Football Pics

GM CHRYSLER MERGER-Will The Feds Help?

While all parties involved with the General Motors and Chrysler merger await any news, the auto analyst believe the deal is coming.

The rumors and reports indicate the deal is done, but still nothing official!

It seems the merger is hinging on an influx of cash from the Treasury to help facilitate the merger,But will the Fed's give up billions with nothing in return?

When the federal Government bailed out Chrysler in the 1980's the UAW had to give up benefits and pay cuts to get the federal aid.

Will GM UAW workers have to give up pay and benefits to save their failing company?

Will thousands of jobs be lost from Chrysler and GM?

This deal is either going to be to complex to help everyone or to simple to believe it happened!

All the auto sources believe we will hear something by 11/1/08!

Stupid Daily News---Political Roast----Lingerie Football Pics

Will The Big Three Ask The UAW To Re-Open The 2007 Contract?

More buyouts will not help automakers shed more workers, Gettelfinger says

Louis Aguilar / The Detroit News

DETROIT -- United Auto Workers President Ron Gettelfinger said he didn't think another round of buyouts would help automakers shed more of their hourly work force but he deflected a question on whether the union is considering re-opening the landmark national labor contracts signed last year with the Detroit Big Three automakers.

"I'm not sure the value of a buyout at this point and time," Gettelfinger told reporters this morning at Detroit's Cobo Center, where the labor union president was honored by the Goodfellows charity organization. Gettelfinger reasoned that UAW-protected autoworkers who were in the position to leave their jobs would have taken one of the previous rounds of buyouts and early retirement offers and he didn't see the "effectiveness" of another round.

Gettelfinger acknowledged that he was in discussions with the Big Three automakers as they grapple with the immense impact of the global financing crisis and the worst auto sales market in 15 years, but he declined to provide details.

When asked whether he was discussing the possibility of re-opening last year's labor agreements, Gettelfinger responded: "Next question."

He was far clearer on protecting the independent health care trusts created for retirees.

Under the four-year labor contracts, Detroit's automakers are shifting retiree health care liabilities to the independent health care trusts, known as a Voluntary Employee Beneficiary Association, VEBA. The VEBA trusts are scheduled to begin operating Jan. 1, 2010, with about $30 billion of what ultimately will be nearly $52 billion in automaker contributions. The UAW has said in the past the money will last for 80 years.

"We do not want to open up VEBA," Gettelfinger said.

"That was one of the most difficult and challenging decisions I ever had to make," he said, referring to the fund's creation.

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