GM to cut 47,000 jobs, close 5 plants - WKRN News 2

GM to cut 47,000 jobs, close 5 plants

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General Motors could ask for another $16 billion in government loans to implement a survival plan that includes cutting 47,000 jobs and closing five additional factories nationwide.

In a restructuring plan submitted to the Treasury Department Tuesday, the Detroit automaker said it will try and borrow up to $16.6 billion more from the government, on top of the $13.4 billion it has already received.

With the restructuring, GM expects to start repaying the government in 2012 and fully pay off the loans by 2017.

GM operates an assembly plant in Spring Hill that makes the Chevy Traverse.  The plant employs 3,400 workers.

Whether Tennessee workers would be affected wasn't immediately clear.

Ryan Hall owns Joey's House of Pizza in Spring Hill said the GM plant is the heartbeat of the city.

He said employees bring in 30% to 40% of his business and should the plant go under, the city would suffer greatly.
 
"It would be like a bomb went off, probably," Hall said.  "This town was nothing.  It was built by Saturn really and that's what brought all these people here."

Earlier Tuesday, Chrysler asked for another $5 billion to survive.  The car company is also planning to cut 3,000 jobs and eliminate three vehicle models.

The car companies were asked to submit a restructuring plan to the government by Tuesday night.

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