BUSINESS BRIEFING
BUSINESS BRIEFING
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AUTOMOTIVE
GM Chief Seeks Loan Program
General Motors' chief executive urged Congress to provide funding for a $25 billion loan program and give the industry flexibility to apply it to fuel-efficiency gains across the vehicle lineup.
Rick Wagoner, right, asked lawmakers at a Senate energy summit to fund a provision in last year's energy bill that would allow the loans to be extended and to draft regulations for the program.
Wagoner said the funding would be "very helpful in enabling the industry to move more rapidly" to produce fuel-efficient vehicles.
The government interest rate for the loans would be around 5 percent, providing about $100 million a year in savings for the companies for every $1 billion in loans.
Chrysler to Offer More Buyouts
Chrysler said it will make another round of early retirement and buyout offers to factory workers in Michigan to reduce the number who are on indefinite layoff due to slumping sales.
Employees will learn about the offers this month, company officials said during an event at a Warren factory where the automaker celebrated the launch of the new Dodge Ram pickup.
About 13,800 of Chrysler's 45,000 hourly workers worldwide are eligible for the offers, and most are in the Detroit area, Chrysler said in a statement.
United Auto Workers Vice President General Holiefield said the offers are similar to past packages offered by the company, but this round has a new education option offered with the state of Michigan. Assistance includes health benefits, cash and up to $10,000 for two years of certified training so workers can go back to school while still being able to support a family, said Al Iacobelli, vice president for employee relations.
Delphi, GM Reach Pension Deal
Delphi and General Motors said they have reached a new deal on the automaker's role in Delphi's bankruptcy exit, including the transfer of employee pensions.
Under the deal, which needs court approval, GM's financial support of Delphi's emergence from court protection would grow to $10.6 billion, up from $6 billion in an earlier plan. The automaker would now take on $3.4 billion in pension obligations for hourly workers, instead of the $1.5 billion that was predicted earlier.
The deal fends off the government's pension insurer, which threatened to file a $900 million claim against Delphi if the companies didn't move forward with a plan to transfer hourly pension obligations to GM.
