Democrat Congressional Leaders have asked General Motors, Ford Motor Company, and Chrysler to provide a business plan as to how the companies will survive. The news is brings new light to the auto industry who had feared bailout talks were over.

After two days of negotiations, U.S. automakers may soon leave Washington without federal funding. Chief executives of General Motors, Ford Motor Company, and Chrysler have been unable to convince lawmakers to provide funding from the $700 billion rescue plan.

This Monday, the Senate is scheduled to review a rescue bill for the auto industry. The bill would provide $25 billion in an emergency loan to GM, Ford, and Chrysler. Since the auto rescue bill is a loan, it differs from the financial bailout package where the government bought stakes in the companies.

Nancy Pelsoi has the government to amend their $700 billion bailout plan that currently only applies to banks and financial institutions to provide assistance to struggling automakers. General Motors, Ford Motors, and Chrysler are seeking as much as $25 billion in immediate assistance in order to avoid potential cash fall shortages.

General Motors reported on Monday that it plans to layoff an additional 5,500 employees as part of its cost cutting moves. The auto company reported a $2.5 billion third quarter loss and stated that its risks running out of cash flow unless it receives government funding by the first half of 2009.

General Motors, who is seeking federal aid in order to avoid a collapse, issued a warning stating that it did not have enough cash to keep operating this coming year and will fall "significantly short" of the amount needed by the end of June unless either the auto market improves or it raises more capital.

A merger between GM and Chrysler is unlikely to occur under the Bush Administration. The U.S. Treasury Department stated that it would not provide aid to the two companies. GM was asking for $10 billion from the Bush Administration in order to help keep the struggling company operational and stated that it could use the resources to fund a merger with Chrysler allowing the two companies to cut costs.

General Motors has exceeded its goal of eliminating nearly 5,000 salaried positions; however, more positions are needed to be cut. As economic conditions continue to worsen, the company announced that more job cuts are necessary. It is also suspending its employee 401k match program amongst other benefits.

General Motors Corp and Chrysler LLC have entered into preliminary talks regarding either a merger or acquisition between the two companies. According to the Times, negotiations between the two companies began one month ago and sources indicate a 50 percent change of a merger or acquisition between the two companies.

General Motors reported Friday that it intends to shut down its SUV plant in Ohio on December 23. The move is part of the company shift towards smaller vehicles. In closing the plant, General Motors declined tax incentives from the state of Ohio valued at $56 million. The plant current manufactures the GMC Envoy, Chevrolet Trailblazer, and Saab 9-7X.

General Motors CEO stated that he is "optimistic" towards congress approving funding for the auto industry. CEO Rick Wagoner is looking to gain $25 billion in low interest government loans. Wagoner dismissed claims that the loans would represent a "bailout" and added that the loan program was approved as part of last year's energy bill. The program was set to provide loans to the auto industry for... More

General Motor's financial division, GMAC, stated on Wednesday that it plans to eliminate 5,000 positions and close all of its 200 mortgage retail offices. The job cuts represent nearly 57 percent of the entire divisions workforce. GMAC much like many other mortgage institutions has lost money related to mortgage related losses for the past four quarters.

General Motors, the largest U.S. manufacture recalled nearly 1 million sedans, SUVs, and pickup trucks world-wide due to a potential short circuit related to the mechanism that heats windshield-wiper fluid. The agency reported that the short circuit could cause other electrical features to malfunction, and could possibly lead to smoke or fire.

General Motors announced plans Thursday to manufacture a new compact car. The new Chevrolet Cruze compact is designed to get 45 miles to the gallon on the highway, compared GM's current top fuel economic vehicle the manual transmission 2009 Cobalt with up to 37 miles per gallon.

General Motors reported a quarterly loss of $15.5 billion as the company continues to struggle with slowing demand for its products. General Motors has nearly $30 billion in North American leases, which are now losing money as SUV's and truck values continue to plummet.