Wednesday, September 17, 2008
General Motors Corp. chair and CEO Rick Wagoner unveiled the automaker's long-awaited electric car on Tuesday, and said the turmoil in U.S. financial markets should not affect government loan guarantees that would help the auto industry develop high-tech vehicles.
 Speaking to reporters at GM's 100th anniversary celebration, Wagoner said the $25 billion US in loans were approved last year as part of an energy bill, and should now be funded to help the industry build next-generation automobiles and meet government fuel economy standards.
"Really a relatively small fraction of the investment the industry will have to make to achieve these improvements was to be provided for by direct loans," Wagoner said. "We're just asking that those loans now be funded, and that the rules and procedures to be able to draw against those loans be finalized promptly."
GM, Ford Motor Co. and Chrysler LLC have been working to get Congress to fund the loans after months of tight credit markets, tepid sales and high gasoline prices.
If the government loans don't come through and the U.S. auto market doesn't recover, GM may have to make further cuts, Chief Operating Officer Fritz Henderson told reporters.
"We could have to do some more things for sure," he said. "Do I have my game plan laid out today? No."
The company may also have to cut more costs if the credit markets remain tight, Henderson said. GM's liquidity plan calls for $10 billion US in internal cuts, and another $5 billion US through asset sales and borrowing.
courtesy of The Associated Press
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