Stakes High As Automakers Return To Washington ~ Thursday December 4, 2008 ~ CityNews.ca Staff

Accused of focusing their businesses on unsustainable and gas-guzzling SUVs and derided two weeks ago for flying by corporate jet to Capitol Hill to beg for money, the big three automakers went into damage control.

This time the CEOs of General Motors, Chrysler and Ford chose to make the 840-km trip to their Washington hearings in eco-friendly hybrids. And GM CEO Rick Wagoner and his officials ate lunch at a humble Quiznos along the way.

Will it help their cause? Top Democrats don’t think so.

The U.S. automakers returned to more hearings in Congress on Thursday, promising massive restructuring - including cutting jobs, executive pay and certain car models - in exchange for $34 billion in emergency aid.

Chrysler said it needed $7 billion this month just to keep operating. GM asked for a $12 billion loan, plus a $6 billion line of credit if economic conditions worsen. And in case one of those two competitors fail, Ford wants a $9 billion line of credit.

GM and Chrysler are also reportedly considering a pre-arranged bankruptcy to avoid liquidation in the sector.

But critics say the companies have failed to show they will be viable in the long run.

Two senate members have suggested that the problem be handed over to the Federal Reserve, with its lending abilities, or the Bush administration, with its $700 billion rescue fund.

Meanwhile, the carmakers are warning the survival of the whole industry is at stake if Congress does not come to their aid.