Cars Blog

Officials of the United Auto Workers (UAW) disclose that car makers GM and Chrysler may not need the additional life line of $17.4 billion from the government.

In their opinion it will be best if the car giants will be able to get out of the mess without having to use additional borrowed funding.

There are experts who see the $13.4 billion aid to GM as sufficient. Some insiders also informed journalists that the car maker will not be asking for more money beyond the allotted $13.4 billion.

UAW is hoping that the sales this year will not be a million or so lower than the dismal sales output of 13.2 million cars. How the car makers’ money will hold out will really depend on the market this year.

The worst projected sale is rock bottom at 10.2 million units. A lot are asking what will be the next move of everyone if this happens. For now, it remains a guessing game.

To date, the two car makers receive $4 billion each from the Troubled Asset Relief Program. Another $5.4 billion of fund is expected to arrive for GM on January 16. Another $4 billion is set to be released on February.

The car manufacturers are also looking to cut costs amid the global financial crisis where consumers are having a hard time borrowing money or at worst losing their jobs.

The UAW officials are set to sit down with GM, Chrysler, and Ford executives to discuss the best route to take on cutting costs on pays, retiree payments, and healthcare.

GM lost around $75 billion since 2004. Figures for Chrysler reveals loses of $1.08 billion in the first half of 2008.