GM and Chrysler call for more cash

The level of financial help requested by General Motors and Chrysler has now reached $39 billion (£27.4bn), just months after getting billions of Federal dollars in funding.

In a bid to ensure the companies survive the recession they also announced huge job cuts and restructuring plans.

Vauxhall owner General Motors has revealed it will axe 47,000 job around the world, as well as closing five US plants - making it the biggest staff reduction by a US company since the economic crisis began.

Meanwhile, Chrysler is to cut 3,000 more jobs and stop producing the Chrysler PT Cruiser, Dodge Aspen and the Durango.

The news comes as the United Auto Workers union announced it had come to an agreement with GM, Chrysler and Ford regarding contracts. Concessions with the union and debt-holders were a condition of the government bailout.

Previously GM said it needed around $18 billion (£12bn) from the Treasury Department, but it now says it may need as much as $30 billion (£21bn). The figure includes $13.3 billion (£9.4bn) already given to the company.

It claims without more funds it could run out of money by March and needs £1.4 billion next month and another £1.8 billion in April.

Chrysler said it now projected that car makers would sell 10.1 million vehicles in the US this year, the lowest level in four decades.

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