GM Loans May Top $30 Billion

Updated from Tuesday, Feb. 17

General Motors (GM Quote) now says it may need more than $30 billion in loans from the federal government, a sign that the outlook for auto sales has deteriorated precipitously since the start of the year.

The expanded request was part of the viability plan submitted to the Treasury Department on Tuesday. On a conference call with reporters, CEO Rick Wagoner noted that GM had sought $18 billion in December, when the Bush administration approved $13.4 billion. Additionally, he said, GM cannot assume its $4.5 billion revolving credit line will be renewed on maturity in 2011, so it wants the government to fund that.

Looking further ahead, if a newly revised, gloomier downside scenario for 2009 through 2011 pans out, GM could require another $7.5 billion, bringing the total to $30 billion. Beyond that, if GM must fund pension plans in 2013 and 2014 -- this is an open question, GM said -- the need could extend beyond $30 billion. ...