America’s two gigantic auto companies — General Motors and Chrysler — announced on Tuesday that they will cut 50,000 jobs and approached the Obama administration to bail them out with a federal aid amounting to USD 21.6 billion.
The two companies have already received USD 17.4 billion in treasury loans.
The company needs another USD 16.6 billion in federal loan,in addition to the USD 13.4 billion it has already received,General Motors CEO Rick Wagnor said in Detroit.
He also announced to shut down at least five of its plants and nearly a quarter of its 6,200 dealership. It is also removing three of its brands – Saab,Hummer and Saturn – from its stable. In the process it would cut 47,000 jobs.
Chrysler followed suit. It announced that it is cutting 3,000 jobs and submitted a plan to the Obama administration seeking USD 5 billion to bail it out from the company’s worst ever sales in the last 40 years.
It also announced to phase out three of its models — Dodge Aspen,Durango and Chrysler PT Cruiser. It had earlier received USD 4 billion.