Increased production of fuel-efficient vehicles and energy-saving technologies
Rationalization of brands, models and retail outlets
Reduced wage and benefit costs, including further reductions in executive compensation
Significant capital structure restructuring
Consolidation in manufacturing operations
Funds requested
Ford is requesting a standby letter of credit for up to $9 billion.
GM
is requesting loans of up to $12 billion.
Chrysler is requesting loans
of up to $7 billion.
The potential repercussions...
The automakers - especially GM and Chrysler - predict catastrophe if they do not receive the loans.
In its business plan, GM claims that without "such assistance, the company will default in the near term, very likely precipitating a total collapse of the domestic industry and its extensive supply chain ... The cost of failure in this instance would be enormous for everyone."
Chrylser argues that the $7 billion is "necessary to prevent further economic decline, if not outright economic depression."
What others have to say
Recent polls have shown varying degrees of support for the bailout among the public.
According to a USA TODAY/Gallup Poll, 47% of adults believe "providing loans and other help" to auto companies is "not very important."
A poll conducted on Nov. 11-12 by Peter D. Hart Research Associates, found that 55% of Americans believe that the government should provide loans to American automakers, while 30% oppose.
A CNN/Opinion Research Corp. poll, conducted by telephone on Dec. 1-2 with nearly 1,100 people, showed that 61% of those surveyed oppose government assistance for the major U.S. automakers.
Entrepreneurs: what do you think?
Here at Growthink, we're curious to hear what entrepreneurs -- who are used to shopping their business plans around to lenders and investors -- have to say about the automakers' business plans and potential bailout.