LOS ANGELES AND WASHINGTON — Their first attempt was a lemon, but the Big Three U.S. automakers get a second chance this week to convince Congress that it should give them a $25-billion bailout -- or as they call it, a bridge loan to the future.
Setting the stage for what could be a crucial moment for the car companies and American industry, General Motors Corp., Ford Motor Co. and Chrysler were scheduled to provide lawmakers with detailed plans today on how they would use federal money to ensure their long-term survival and not just dodge an immediate collapse.
Later in the week, the companies' chief executives will return to Capitol Hill, attempting to reverse disastrous performances when they first asked for help last month.
One thing is certain: All three now see the wisdom of appearing humble. They've forsworn the use of private jets -- which became a symbol of corporate high-handedness in Round One -- for the return trip to Washington.
Ford Chief Executive Alan Mulally plans to drive to Washington in a gas-electric hybrid vehicle. GM and Chrysler said only their CEOs would not be flying in private jets.
But skeptics still abound. And the companies' detailed reports to Congress, just like their executives' new travel plans, may be more about public relations than economics.
Analysts say the expected promises to renegotiate labor contracts, cut benefit costs or reduce product lines may placate some in Congress but will be hard to achieve.
Selling brands and cutting costs
So far, only a few details of the proposals have emerged, including eliminating or selling brands. GM has had its Hummer unit on the block since June, and it is now understood to be considering the sale of Saab or even Pontiac and Saturn.
Ford, meanwhile, sold Jaguar and Land Rover to Indian carmaker Tata Motors this year. And Mulally on Monday added another high-end line to the for-sale list: Volvo.
But saying a brand is for sale and actually selling it are two different things, said Robert Schulz, an auto industry analyst for Standard & Poor's. With lending for corporate acquisitions all but frozen, there may be few takers for even a prestige marque such as Volvo.
"There's no obvious candidate to offload these assets to," Schulz said.
Labor costs will almost certainly be on the line.
The United Auto Workers leadership appeared in Washington with the heads of Ford, GM and Chrysler last month, and industry experts say it's likely that they will be asked to make further cost concessions.
