GM rushes to file plea for lifeline

The board of General Motors will hold another round of crunch talks today as it scrambles to complete its rescue plan to try to win a £7.8 billion government lifeline.

US Congress has demanded GM and rival carmakers submit details of cost-cutting plans by tomorrow as a condition of considering a £16 billion rescue package for the embattled industry.

The boards of GM, as well as Chrysler, met yesterday to review their strategy to cut costs ahead of their submissions.

The GM board meeting came on the same day that United Auto Workers president Ron Gettelfinger signalled his union was prepared to offer further concessions in order to win support for the bailout, provided management agreed to cut corporate pay, bonuses and severance packages.

Last month, GM's chief executive Rick Wagoner came under fire for using a private jet to fly to a meeting in Washington where he made his initial request for a state bailout.

After seeing their initial requests for a bailout rebuffed last month, the carmakers will make stronger cases tomorrow, saying they plan to build leaner operations.

Ford, GM and Chrysler are exploring all financial options to avoid filing for bankruptcy protection, which they warn would devastate their car businesses.

They are also looking to foreign governments with GM and Ford approaching Sweden's government about financial aid for their loss-making Saab and Volvo brands.

Stockholm has considered devoting about £160m to Saab and Volvo in aid or loan guarantees, although "the discussion is open", said Matts Carlsson, an analyst at the Gothenburg Management Institute.