GM, which has warned that it could run out of cash as soon as January, presented a restructuring plan to Congress which it said would allow it to achieve "long-term viability".
The Big Three US car companies - GM, Ford and Chrysler - all put forward proposals overnight to trim fat and revitalise their companies to face economic challenges ahead.
GM said it plans to radically slash operating costs, increase the production of fuel-efficient vehicles and offered lawmakers several symbolic concessions including paying its chief executive a salary of just $US1 and selling its corporate jets.
The company said it will cut the number of its US plants to 38 in 2012 from 47 in 2008 while US employment will be reduced from the current level of 96,537 people to between 65,000 and 75,000 salaried and unionised workers by 2012.
GM said it expects to be "fully competitive" with Toyota on US labour costs for "both current workers and new hires" by 2012 due to "additional changes to be negotiated" with its main union, productivity improvements, turnover rates and the planned job cuts.
The largest US carmaker said it would need $US12 billion to cover operating costs through the end of 2009 and also requested a revolving credit line of $US6 billion to "provide liquidity should a severe market downturn persist".
GM vowed to repay the $US12 billion loan by 2012 should overall US auto sales remain at or above 12 million vehicles a year. The plan will allow the company "to operate profitably at industry volumes between 12.5 and 13 million vehicles".
"This is substantially below the 17 million industry levels averaged over the last nine years, so it is considered to be a reasonably conservative assumption for gauging liquidity needs," GM said in a statement accompanying the plan.
The plan also calls for "shared sacrifice, including further reduction in the number of executives and total compensation paid to senior leadership," GM said.
GM said it will cut the number of vehicle types it offers in the US to 40 in 2012 from 51 in 2000 and also will slash its dealer network to 4700 in 2012 from 8138 in 2000.
GM currently sells 48 different vehicles at 6450 dealers in the US.
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