GM needs $16.6 billion more

February 17, 2009 5:17:00 PM PST
General Motors Corp.'s restructuring proposal says the company may need up to $30 billion in government loans as it implements a survival plan that includes cutting 47,000 jobs and closing five more U.S. factories.

GM submitted the dire plan to the Treasury Department on Tuesday to explain how the Detroit automaker will become viable and repay its loans. It says GM will try to borrow up to $16.6 billion more from the government, on top of the $13.4 billion it has already received.

With the restructuring, GM expects to start repaying the government in 2012 and fully pay off the loans by 2017.

GM says it has considered the option of bankruptcy, but the only credit available to finance a reorganization would be from the government, and it could cost as much as $100 billion.