General Motors Corp is pushing for union and creditor concessions as it races to complete a report that asks the US to increase a $13.4 billion emergency aid package, people familiar with the plan said.
Plunging US auto sales, which fell to the fewest in 27 years in January, have increased cash consumption by the Detroit automaker, and GM will need additional US aid to survive, said the people, who asked not to be named because the plan isn’t final. The total request in the February 17 report to Treasury Secretary Tim Geithner may exceed the $18 billion GM sought in a December 2 government appeal, they said.
The deadline intensified the importance of negotiations with the United Auto Workers union, which walked away on February 13 in a dispute over changes to retiree health care, and returned to bargaining on Sunday.
GM also continued talks to get creditors to accept a two-thirds reduction in the value of their holding in exchange for equity, people familiar with the situation said.
