Remember that these numbers only relate to the former workers who qualify for benefits.  Part time workers who are now laid off don't qualify.  People who worked for a straight commission and got canned or laid off don't qualify.  It also doesn't take into account those who have exhausted their benefits and are still without jobs.


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Bottom line: U.S. auto industry says it needs $97.4 billion to live

WASHINGTON -- Add together all the billions on the table and this number pops up on the calculator -- $97.4 billion.

That's what the U.S. auto industry says it needs from the government to keep itself afloat through a recession that looks deeper every day. The sum will only grow if consumers don't buy more new cars and trucks.

The figure -- equal to $874 from every U.S. household -- includes up to $39 billion in survival loans for General Motors Corp. and Chrysler LLC, a $25.5-billion rescue sought by auto suppliers and $25.4 billion in requests to retool auto plants to build more efficient models.

And it's likely not the end.

...
The aid sought by Detroit's automakers is many multiples of their current market values.

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Bruce Clark, a senior vice president with Moody's Investor Service, said the firm hadn't changed its December estimate of a 70% likelihood of bankruptcy for both GM and Chrysler.

Shelly Lombard, a credit analyst... said it was unlikely that the Obama administration would suddenly decide the industry's survival was not worth the price on the window sticker.

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GM's bondholders skeptical

As General Motors Corp. intensifies negotiations to restructure its debt, the automaker is running into resistance from bondholders who are questioning whether the company's viability plan goes far enough to fix the struggling automaker.


"It's not clear they've pushed it hard enough," a person familiar with the committee representing the bondholders said Wednesday, a day after GM unveiled the plan. The person noted that bondholders "are very concerned."

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At the end of 2008, GM's total U.S. pension obligations were estimated at $96.9 billion.

GM blamed the pension's status on several factors, including returns on investments. Money from the fund also has been used to help pay for restructuring efforts, such as retirement incentives.

The Pension Benefit Guaranty Corp., the federal corporation that insures retirement plans, raised concerns over GM and other automakers using pension funds to pay for employee buyouts last November.

The corporation declined to comment Wednesday.

Young said he suspected other companies would soon be announcing similar problems with their pension funds.

Robert Kemp, a pension expert at the University of Virginia, agreed. "What's happened, not just to GM but everyone, is the value of their portfolio of their assets has gone down significantly," he said.

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UAW rejects stock for VEBA

As part of its $17.4 billion in loans to General Motors Corp. and Chrysler LLC, the government proposed that the union accept stock instead of cash to fund that VEBA.

The UAW has a tentative agreement with the Detroit Three on a variety of key areas -- including wages, work rules and benefits -- but it has drawn a line in the sand over the government's stock proposal to fund the VEBA.

...the automakers' stock price has been volatile and trading at historic lows, making its future value uncertain. On Wednesday, shares of GM closed at $2.06. Ford closed at $1.67 a share. Chrysler is a privately held company.

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Doug Bernstein, a bankruptcy attorney and partner at Plunkett Cooney PC, said there is an additional risk with accepting stock instead of cash payments.

In any bankruptcy case, shareholders receive the lowest priority for debt payments and frequently don't receive any payments.

On Wednesday, Moody's Investors Service said that the risk of a bankruptcy filing by GM and Chrysler remains high.
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Auto bailout tab could top $130 billion

GM and Chrysler say they need $21.6 billion more in loans. But that won't be enough to save Detroit. Here's a rundown of all the auto bailout proposals.
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Trump: GM would be better off in bankruptcy

WASHINGTON -- Add Donald Trump to the list of people who think General Motors Corp. would be better off in bankruptcy than asking for more government money.


In an appearance on the "Late Show with David Letterman" Wednesday night, the real estate and reality television show mogul offered an explanation for why the three Atlantic City, N.J., casinos that bear his name had to file for bankruptcy this week.


Trump said the gambling industry "was a disaster," that he wasn’t involved in management and that the company rejected his offer to buy it and chose bankruptcy.


"Frankly, that’s what General Motors should be doing instead of asking for money, they should go into bankruptcy," Trump said. "They’ll make a better deal."


The Late Show audience applauded Trump’s comment.


Trump resigned as chairman of the board of Trump Entertainment Resorts last week. He owns 28% of the company's stock.

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