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How bailout money would change GM.

Publication: Automotive News
Publication Date: 17-NOV-08 		Format: Online
Delivery: Immediate Online Access
Full Article Title: How bailout money would change GM.(NEWS)(General Motors Corp.)

Article Excerpt
Byline: Jamie LaReau

Even if General Motors gets a congressional bailout to survive the next year an outcome very much in doubt the company will emerge in 2010 looking very different.

For starters, it will be a lot smaller. According to some estimates, GM must slash North American production as much as 700,000 units the equivalent of 21/2 assembly plants.

It will be partially owned by taxpayers; it will produce smaller, more fuel-efficient vehicles; sales incentives will drop; and departing executives won't be getting huge pay and benefits packages.

Let's assume, for the moment, that Congress gives GM the $12 billion it needs to survive next year. That bailout would be part of a larger $25 billion bailout of the Detroit 3 that Congress will debate this week a debate that will be contentious.

Any bailout will come with strings attached. Democrats will demand limits...

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