DETROIT – General Motors Corp. on Tuesday, meeting a Congressional deadline to report on its progress restructuring, said it will need as much as $16.6 billion in additional federal aid and could run out of money next month if it doesn’t receive at least some of that funding immediately.

The No. 2 world automaker, surviving on $13.4 billion in emergency loans granted in recent months, laid out a plan to close more factories, eliminate thousands of dealerships and slash 47,000 jobs this year around the world, The Wall Street Journal reported.

GM, however, said it failed to strike critical deals with the United Auto Workers union and bondholders to reduce labor costs and shrink its $47 billion debt load. Negotiations with both parties are expected to continue.

Meanwhile, Chrysler LLC is seeking an additional $2 billion in federal funds on top of the $7 billion bailout it requested in December as part of the viability plan submitted to the Treasury Department on Tuesday afternoon.

Chrysler, which cited an “unprecedented decline in the automotive sector” since December, said it expects to remain viable and conduct an orderly restructuring outside of bankruptcy.

Chairman and Chief Executive Robert Nardelli said the company’s standalone viability plan, enhanced by a strategic alliance with Fiat SpA, is the best option for Chrysler employees, unions, dealers, suppliers and customers. The company so far has accepted $4 billion of its original $7 billion request.

WSJ Mean Street blogger Evan Newmark says in the one month President Obama has been in office, the markets already hate his presidency, his treasury secretary and his stimulus plan. But he tells colleague Dennis Berman the president has a chance to turn the tide — tell Detroit, “No more Mr. Nice Guy and no more money.”

Chrysler now expects industrywide sales of 10.1 million vehicles in the U.S. in 2009, a 40-year low, and an average of 10.8 million annually through 2012. That number is 7.2 million less than Chrysler predicted in December and means a reduction of $18 billion in revenue and a $3.6 billion decline in cash inflow for the company during the next four years.

Chrysler has signed a nonbinding agreement with Italian auto maker Fiat to create a joint venture in which Fiat would provide technology and engineering for the U.S. company to make small cars. Fiat also would help the company operationally, he said.

Chrysler’s viability plan includes 24 launches in 48 months and the introduction of electric vehicles to help meet current federal fuel economy standards.

In addition, the company plans more restructuring this year, including cutting 3,000 jobs and eliminating one shift of manufacturing, discontinuing three vehicle models, removing 100,000 units of capacity, lowering fixed costs by $700 million and selling $300 million additional non-earning assets.

Chrysler said concessions from the United Auto Workers, dealers, suppliers and second-lien lenders have been implemented or fundamentally agreed on.

GM, in a 100-plus page report submitted to the U.S. Treasury, argues that bankruptcy would still be more costly and drawn out than a government-funded restructuring. The auto maker said a traditional bankruptcy could cost as much as $100 billion, attributing much of that cost to lost revenue.

Instead, GM proposes an accelerated downsizing that involves cuts deeper than those outlined in December. Steps include shuttering 14 factories by 2012 rather than nine, eliminating 47,000 hourly and salaried jobs this year globally, and closing its Hummer truck brand this year and Saturn in 2011 if no alternatives arise.

GM shares were up 2 cents at $2.20 in recent after-hours trading. The stock was the biggest decliner among Dow Jones Industrial Average components during Tuesday’s regular session, falling 13 percent.

GM’s loan request includes $4.6 billion it hopes to draw in March and April. That would bring the loan total to $18 billion, which is the amount GM initially requested in December. Additionally, GM is asking for a $7.5 billion line of credit that could be drawn under a downside scenario and to defer repayment of a $4.5 credit line due in 2011. Combined with the $13.4 billion GM already received, GM’s total aid package could total $30 billion.

Under the plan submitted Tuesday, GM says it can break even once U.S. vehicle sales hit a seasonally adjusted rate of 11.5 to 12 million car and truck sales.

The auto maker will seek government aid from other nations and restructure around the globe.

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