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GM and Chrysler seek extra £15.2bn in funding

General Motors and Chrysler have asked the US government for an extra $21.6 billion (£15.2bn) in financial aid, in addition to the $17.4bn (£12.3bn) they have already been given.

Both manufacturers revealed their survival plans to the US treasury department and have announced 50,000 job cuts in total in a bid to cut costs.

GM wants $16.6bn (£11.8bn) and plans to axe 47,000 jobs globally. Chrysler has asked for $5bn (£3.5bn) and is planning to cut 3,000 jobs.

GM will also close five more US factories and as expected, will dispose of Saab, Hummer, Pontiac and Saturn. It will instead focus on four core brands – Chevrolet, Buick, Cadillac and GMC.

GM is aiming to return to profit within two years and fully repay its loans by 2017.

Chrysler had already announced that it would end production of the Chrysler PT Cruiser, but will also cut its Aspen 4x4 and Dodge will cut its Durango SUV.

Chrysler said it was expecting the current downturn in the US to last another three years.

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