UAW Grants Concessions, Exec Warns of Depression

Both Chrysler LLC and General Motors Corp. are so perilously low on cash that the companies may not be able to pay all their bills by the end of the year. GM wants a total of $18 billion in loans. Chrysler is seeking $7 billion, and both manufacturers say they need cash this month.

Jim Press, president and vice chairman of Chrysler, left, Sen. Arlen Specter, R-Pa., and Neil M....

Jim Press, president and vice chairman of Chrysler, left, Sen. Arlen Specter, R-Pa., and Neil M. Schloss Vice President and Treasurer, Ford Motor Company are seen during a photo opportunity at a round-table meeting attended by nearly two dozen auto industry officials, in Philadelphia, Tuesday, Dec. 2, 2008. Specter said Tuesday the mood in Congress "candidly is not supportive" of automakers seeking a bailout package of $25 billion in loans. (AP Photo/Matt Rourke)

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Ford Motor Co., which borrowed billions before credit markets tightened, says it can survive through 2009 and may not need to tap the $9 billion credit line it requested.

As a further sign of the companies' dire straits, Moody's Investors Service on Wednesday downgraded its ratings for GM and Chrysler, sending them further into non-investment, or "junk," status. Moody's affirmed its ratings for Ford, but said the outlook for the three automakers is "negative," implying further downgrades are possible.

Sent home empty-handed last month, executives from all three companies knocked on doors on Capitol Hill and made television appearances Wednesday, hoping the detailed plans they submitted Tuesday would convince hostile lawmakers to help. CEOs from all three, plus Gettelfinger, will appear before Senate and House committees Thursday and Friday.

Fritz Henderson, GM's president and chief operating officer, stressed on NBC's "Today" show that bankruptcy isn't a viable option.

Choosing bankruptcy, he said, would further erode consumer confidence in the automaker and "we want them to be confident in their ability to buy our cars and trucks."

All three executives took hybrid cars from Detroit to Washington after enduring harsh criticism last month for using corporate jets for the trip.

The automakers' plans were being scrutinized by legislators, the White House and the Treasury and Commerce departments.

"It sounds to me like the companies have given this a lot of thought and are willing to make some tough decisions," White House press secretary Dana Perino said. "We just need a little more time to pore through the documents."

President-elect Barack Obama said it appeared that the CEOs were returning to Congress with a "more serious set of plans" for how their companies are going to survive.