Automakers' Debt May Be Obstacle to Federal Loans

Critics say that with such huge debt payments, the Detroit Three will have less money for research than their foreign competitors, so they'll fall behind and eventually end up in trouble again.

GM and the other automakers argue that if they can get through the sales slump, and credit loosens so more people can buy vehicles, the companies will start making money as buyers return to showrooms in droves.

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With revenue coming in, GM would restructure its debt, preserving funds for research on next-generation fuel-efficient products such as the Chevrolet Volt rechargeable electric car or the Chevrolet Cruze compact, said GM spokeswoman Renee Rashid-Merem.

"At the end of the day it's about prioritizing, and making sure your research and development dollars are spent on those things that are providing you a competitive advantage," she said.

But GM's filing with the SEC expresses doubt about its ability to pay for everything.

"If we continue to operate at or close to the minimum cash levels necessary to support our regular business operations, we may be forced to further curtail capital spending, research and development and other programs that are important to the future success of our business," the filing said.

GM also is likely to tell Congress about efforts to shed brands, although it would prefer to sell them rather than shutting down Pontiac, Saturn or Saab, said one of the people briefed on the plan. Shutting them down would require cash the company doesn't have, the person said.

On Monday, Ford announced that it was looking into the sale of its Volvo brand to raise cash.

Some members of Congress have urged the Big Three executives to take major pay cuts as part of the deal. Nardelli said he would work for $1 a year, and a similar commitment is expected from GM CEO Rick Wagoner. Ford plans include a pay cut for Ford CEO Alan Mulally, although the size of the cut was not immediately available.

That might not be enough for some lawmakers. Rep. James Clyburn, D-S.C., the Democratic Whip, told reporters Monday in Columbia, S.C., that the three CEOs should quit.