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US carmakers wrangle for rescue money

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US carmakers wrangle for rescue money

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The Ford Motor Company has requested a seven billion euro credit line from Congress, claiming that it expects to break even or go into pre-tax profit by 2011. The carmaker added that it sees no liquidity problem unless the recession gets worse. The company looks set to sell off five corporate jets and, in a novel move, pay Chief Executive Alan Mulally a dollar a year as salary if Ford touches the government money.

Meanwhile, Ford sat down with General Motors and Chrysler to submit plans demanded by Congress for a 20 billion euro rescue package the industry says it needs. The US motor trade is expected to promise more fuel-efficient cars, drop unpopular brands and put a cap on huge executive payouts. General Motors is in the deepest trouble, already claiming it will run out of cash to pay monthly bills by the end of the year.