Big Three CEOs Ready Game Plan

The company said it will award no bonuses in 2009 and is talking with the United Auto Workers union in an effort "to further reduce its cost structure and eliminate the remaining labor cost gap that exists between Ford and the 'transplants,'" foreign car companies that have set up shop in the U.S.

Ford said it is moving quickly to develop hybrids, and it expects the fuel efficiency of its cars to improve by 35% for 2015 models. It also expects break-even or profitable pre-tax results in 2011.

Meanwhile, GM said it would seek federal bridge loans up to $12 billion to ensure adequate liquidity through the end of next year, as well as a $6 billion line of credit "to provide liquidity should a severe market downturn persist." The company said it anticipates an initial draw of $4 billion on the bridge loans this month, saying it would repay the loans by 2012.

The company said it will focus on four core brands, Chevrolet, Cadillac, Buick and GMC. Pontiac would become "a specialty brand with reduced product offerings." Hummer could be sold. GM will "explore alternatives for the Saturn brand" with dealers, and it will review the future of the Saab brand.

GM said its wage rates will equal Toyota's by 2011. It plans to reduce debt by negotiating with unions, lenders and bond holders. On the labor side, it foresees changes in job security provisions, paid time-off and post-retirement health care. GM would honor warranty obligations and the status of existing trade creditors.

On Wednesday, a top executive of GM said bankruptcy isn't a viable option for struggling U.S. automakers, maintaining that the retooling plan being presented to Congress will save the industry, the Associated Press reports.

Fritz Henderson, GM's president and chief operating officer, acknowledged Wednesday morning that the automakers bungled their initial efforts to get federal relief in their appearances on Capitol Hill last month.

Henderson said the companies have a better, more detailed plan this time around and that company officials already are on Capitol Hill briefing lawmakers on it in advance of the congressional hearings, AP reported.

Henderson was interviewed on NBC's "Today" show Wednesday.