UPDATE:GM, Chrysler Race To Finish Plans For Release Late Tuesday
17 Februar 2009 - 5:29PM
Dow Jones News
General Motors Corp. (GM) expects to release a
government-mandated recovery plan to the public after 6 p.m. EST on
Tuesday, although the report might not include critical concessions
from the company's labor unions and bond holders.
Chrysler LLC is working on a similar disclosure and expects to
release its plan around 5 p.m. EST.
The two auto makers, surviving on $17.4 billion in federal aid,
are required to submit detailed restructuring plans to the U.S.
Treasury on Tuesday as a condition of the loans.
GM shares were down 9.6%, or 24 cents, to $2.26 in recent
trading. The auto maker's stock has lost more than 90% of its value
in the last year.
At GM, overnight negotiations with the United Auto Workers
failed to produce a deal that would substantially cut labor costs,
sources familiar with the talks said. Bargaining continued
Tuesday.
The auto maker also is working to convince bond holders and
other creditors to accept terms that will reduce its substantial
debt.
GM said it will submit its restructuring plan regardless of
whether is succeeds in cutting deals with the union or
bondholders.
GM's plan, which sources say is 800 to 900 pages long, explains
how the auto maker can turn around operations that have lost more
than $70 billion since 2004. It is expected to detail plant
closings, plans to eliminate models and brands and to further
reduce structural costs.
UAW negotiations hinge on GM's efforts to change terms under
which it pays the union to assume responsibility for billions in
retiree medical costs.
The two sides made progress over the holiday weekend but were
still hammering out significant differences, according to people
familiar with the talks.
Ford Motor Co. (F) did not ask for federal government aid,
although the auto maker is likely to seek concessions in line with
what GM and Chrysler win.
Meantime, Canadian Auto Workers President Ken Lewenza plans to
speak about the restructuring plan at 3 p.m. EST Tuesday.
-By Sharon Terlep, Dow Jones Newswires; 248-204-5532;
sharon.terlep@dowjones.com.