The second round of pleas by the Detroit Big Three automakers to convince the senators for the federal bailout for their survival appears to be failing. Interestingly, unlike the last trip to Washington in private jets, the CEOs this time made the 500-mile return trip from Washington to Detroit in the hybrid cars.

GM asked for $12 billion in short-term loans, plus a $6 billion line of credit. GM needs $4 billion immediately and $4 billion more in January, and hopes to repay the government by 2012. Chrysler needs a $7 billion bridge loan. Ford requested a $9 billion line of credit, though hopes never to use it. Americans have many questions.

Will the onetime giant General Motors survive through the end of this month without a quick rescue or collapse deepening the already painful recession in US? Can GM survive with its restructuring, closure of plants, layoffs, downsizing and dropping of some brands? Will GM free up research, marketing and overhead costs?

Will Chrysler be sold turning the Big3 into the Big 2?

Could the automakers return to profitability even with a massive infusion of government cash? Will President Bush use his authority to find a way out, be it under the $700 billion financial rescue program to forestall the auto industry’s collapse?
Why are the car companies, which support one in 10 U.S. jobs, less deserving of assistance than Wall Street banks and insurance companies? The Federal Reserve and the Treasury Department, under President Bush, managed to provide $30 billion for Bear Stearns, and a $150 billion rescue for AIG, and committed $250 billion to Fannie Mae and Freddie Mac, and more than $300 billion for Citi Group. Automakers even today ask for only $34 billion between three huge companies. Bush administration officials remain adamant to reserve the bailout funds exclusively for the financial system. Can’t Bush come out to help?

Will ultimately the Big Three agree to the alternative course suggested by several lawmakers in both parties to consider a pre-negotiated bankruptcy – something they have consistently shunned?

And finally a relevant question remains. Will Chinese automaker like Geely and SAIC with the desire to get a footprint in the U.S buy its way into the U.S. market?

On the part of automakers, GM and Ford are trying to salvage the situations with all the weapons with them. GM promises to bring its labour cost in line with Toyota by 2012. All three are limiting executive pay and have also won money-saving union agreements. GM and Ford both are working overtime for getting green with hybrid and plug-in electric vehicle plans. Will the consumers better accept those than Toyota’s Prius? Will those financially boost the bottom line with their high price? I only hope that the falling prices of gasoline don’t decelerate the work of GM and Ford to come out with the new green and commercially viable technologies. By the time I left US on November 29, 2008, the gasoline price had come down to less than $2 a gallon from the peak of above $4 a gallon last year. GM claims to be learning from the mistakes made in past. Ford also acknowledges big missteps, such as the company’s approach that once was “If you build it, they will come.” “We produced more vehicles than our customers wanted, then slashed prices.” But as a result of these past mistakes, they “are really focused” today. Even United Auto Workers union is aligning today with the industry and is against any kind of bankruptcy, even a prepackaged one, as “a viable option”, as consumers would not buy autos from bankrupt companies.

I wish American lawmakers would save GM and help Ford. In overall restructuring, Chrysler may get merged into GM. And that is pretty rational.

PS: Congressional Democrats and the White House reached for agreement Friday on about $15 billion in bailout loans for the beleaguered auto industry. President George W. Bush warned that at least one of the Big Three carmakers might not survive the current economic crisis.

PS
Here is another solution:A Toyota Takeover Could Save GM