DETROIT – General Motors Corp., presenting a dire outlook for the future, said Tuesday it may need $30 billion in total government financing to weather the economic downturn and would cut 47,000 jobs worldwide and shutter five more U.S. factories in a massive restructuring plan.

The automaker is already surviving on $13.4 billion in federal loans and said in a plan submitted to the Treasury Department that it would seek an additional $16.6 billion if economic conditions worsen, but it could achieve profitability in two years and fully repay its loans by 2017.

The U.S. automaker presented its turnaround plan to the Obama administration as it worked to win concessions from the United Auto Workers union and bondholders to dramatically resize the company. The UAW said it reached a tentative deal with GM, Chrysler LLC and Ford Motor Co. on contract changes but discussions were still under way about how the companies would fund union-run trust funds that will take over the companies' retiree health care obligations starting next year.

GM said it was making progress but had not yet achieved all the concessions from union workers, debt holders, dealers and suppliers that the Bush administration sough in the loan terms provided last December.

President Barack Obama's administration will review the plans from GM and Chrysler LLC but could pull the loans if they don't approve the turnaround plans by March 31. The review could be extended into April, but if the government demands the money back it would force the companies into bankruptcy.

GM predicted it could run out of money before the March deadline and said it is seeking the additional funding under a worst-case-scenario projection, as U.S. sales have plummeted to a 26-year low and auto sales have fallen in other parts of the world.

In December, GM said it might need a total of $18 billion in government financing but only got a commitment of $13.4 billion, including $4 billion that the automaker received Tuesday.

GM wants to receive an additional $2 billion in March and $2.6 billion in April. The company has a $4.5 billion revolving line of credit that must be refinanced in 2011 but now believes that private funding won't be available, so the automaker is asking the government to lend the money.

If market conditions deteriorate, GM says it may also need an additional $7.5 billion revolving line of credit to stay afloat, for a total potential request of $30 billion.

GM said it reviewed the potential costs of a bankruptcy filing, but said it was a poor option. If GM was forced into Chapter 11 reorganization proceedings, the company said the only credit available would be from the government, and the cost could reach as much as $100 billion.

GM's plan details extensive cuts. The automaker would reduce its U.S. manpower from 92,000 salaried and hourly workers at the end of 2008 to 72,000 employees by the end of 2012. Worldwide, it envisions slashing 47,000 workers, including 37,000 hourly workers and 10,000 salaried employees.

In its Dec. 2 plan to the Bush administration, GM said it would cut the number of plants from 47 in 2008 to 38 by 2012. But the new approach goes further, cutting an additional five plants by 2012 to a total of 33 facilities.

GM's brands would be reduced from eight to four — Chevrolet, Buick, Cadillac and GMC — as the automaker said in December.

The company is considering a sale of the Hummer brand and a decision could be made by the end of March. The Saturn brand could be phased out by the end of 2011. The company is also considering its options for the Pontiac and Saab brands.

GM said all of its major U.S. vehicle launches from 2009 to 2014 would be high-mileage cars and crossovers.

Today is the due date for Chrysler LLC and General Motors to submit separate "Viability Plans" to the U.S. Treasury Department that demonstrate the tax payers' $15 billion in low-interest loans has and will be put to good use. Chrysler earns extra credit from teacher for turning its homework in first, as the Auburn Hills, MI-based automaker revealed this afternoon what progress has been made since the loans were granted in December and what will be done in 2009.

All of the info that Chrysler publicly released can be found after the jump, but we'll direct you first to a paragraph that immediately follows Chrysler's gloomy forecast for industry sales through 2012. It contains a request for an extra $2 billion on top of the $4 billion already given and $3 billion yet to be delivered. That would raise Chrysler's debt to the federal government from $7 billion to $9 billion and is based on a projected SAAR (Seasonally Adjusted Annual Rate of auto sales in the U.S.) of at least 10.1 million units.

So how does Chrysler prove to the feds that our money will be well spent? The Viability Plan clues the feds in on a pending strategic alliance with Fiat, which will give Chrysler access to small, fuel-efficient vehicles; new distribution networks in emerging markets; and other cost saving opportunities. Chrysler also notes some major new product that will arrive in 2010 including the redesigned Jeep Grand Cherokee, Dodge Charger, Chrysler 300 and a new unibody Dodge Durango. Add to that a Dodge Ram two-mode hybrid and the automaker's promised electric vehicle, as well.

Follow the jump to continue...


Chrysler isn't done restructuring to better align with reduced demand, either. It plans to further reduce its fixed costs by $700 million, reduce one more shift of manufacturing, say good-bye to 3,000 more workers, kill off three more vehicles, reduce production capacity by 100,000 more units and sell off $300 million of non-earning assets.

As for concessions from dealers, suppliers, the UAW and debt holders, Chrysler is somewhat vague on exactly how much progress it's made with each party. What it does say, for instance, in the case of the UAW, is that modifications already made "fundamentally comply with the requirements set forth in the U.S. Treasury Loan."

What does it all add up to? That, we suppose, is for our government to decide. The short story, however, is that industry sales fell sharper than anyone expected in December and January, and Chrysler claims that it will need another $2 billion to survive based on current projections.

Also note that the feds required both Chrysler and GM to include an altternative for bankruptcy in their Viability Plans, just in case. Chrysler did, and also released a letter to its stakeholders saying that the company does not intend to pursue this option. It's a scary thought, as Chrysler estimates it would require $24 billion in debtor-in-possession financing over two years, otherwise its creditors would receive anywhere from 25% to 0% of their investment. You can check out Bob Nardelli's letter to the stakeholders below.