Dec. 2 (Bloomberg) -- General Motors Corp. said it will run out of money to pay its bills this month unless Congress gives it access to $4 billion immediately and is seeking $18 billion total as a worsening economy forces the automaker to use more cash.

GM asked for $12 billion in loans and an additional credit line of $6 billion, as it tries to shrink U.S. employment by 34 percent, close plants and emphasize only four of eight current U.S. brands, according to a statement today on its Web site. The Detroit-based company also is trying to cut debt in half and win new concessions from the United Auto Workers union.

“Our plan is part of an urgent request for federal funding to help the auto industry weather a major crisis” GM Chief Executive Officer Rick Wagoner said on a conference call. The request “demonstrates in detail why GM needs federal funding not just for the company, but to be beneficial to the U.S. economy.”

Ford Motor Co. today asked Congress for a credit line of as much as $9 billion, saying it expects to break even or be profitable before taxes in 2011 and may not need to use the aid. Chrysler LLC sought $7 billion in loans, saying that without “an immediate working capital bridge” it may lack funding to get through next year’s first quarter.

The automakers’ $34 billion in requests exceed the $25 billion in aid lawmakers have been considering for them. The companies must persuade a divided Congress their plans to shrink are severe enough to ensure repayment of the loans.

The company proposals came the same day as GM said November U.S. sales tumbled 41 percent from a year earlier, Ford reported a 31 percent drop and Chrysler posted a 47 percent decline.

‘Lifeline’

“We hope that we can work something out” with the automakers, Senate Majority Leader Harry Reid, a Nevada Democrat, told reporters. “We don’t want to throw them a lifeline if the lifeline doesn’t get them to the shore.”

Reid agreed to hold a second lame-duck session to consider the requests next week. Lawmakers already have set hearings for Dec. 4 and 5.

Lawmakers are split on whether aid for the automakers should come from a $700 billion bank-rescue fund or Energy Department loans approved in September.

“Our expectation is that they go and duly genuflect and appear to be repentant,” said Eric Noble, president of Car Lab, an Orange, California-based consulting firm for automakers including GM, Chrysler and Toyota Motor Corp.

Ford said it doesn’t anticipate a 2009 “liquidity crisis,” barring a competitor’s bankruptcy or more severe economic slump.

Selling Jets, Cutting Pay

GM, which along with Ford and Chrysler was criticized for using corporate jets to get to Washington last month, said in a statement it will halt travel on such aircraft starting Jan. 1 and is pursuing the sale of four planes.

Ford plans to sell five jets and would pay Chief Executive Alan Mulally a $1 annual salary if the loan is used. GM’s Wagoner and Chrysler CEO Robert Nardelli also would be paid $1 a year under their companies’ requests.

Wagoner will drive to this week’s hearings in company vehicles such as a gasoline-electric Malibu sedan, said Tony Cervone, a GM spokesman. The automaker said pay for its top five executives will be reduced.

House Majority Leader Steny Hoyer, a Maryland Democrat, said in a statement he hopes the automaker plans and hearings will lead to increased public confidence in the industry’s viability “and that Congress will be able to take action next week.”

Without the loans, GM said, its cash on hand will fall below the $11 billion it needs to pay monthly bills.

Debt Target

GM is seeking to reduce total debt of $62 billion, including obligations related to a union retiree health-care fund, to about $30 billion, according to the plan. The company had $43.3 billion in debt at the end of September, not including borrowings associated with the retiree plan.

The automaker intends to focus most of its future product development and marketing on the Chevrolet, Cadillac, Buick and GMC brands. Pontiac will become a niche brand with few models, and GM said it will consider options for Saab and Saturn. The company already said it is seeking a buyer for its Hummer unit.

Chrysler called its request a “bridge loan” to cover immediate expenses. The Auburn Hills, Michigan-based company, owned by Cerberus Capital Management LP, said it expects an operating profit next year, while using up $2 billion in cash. Chrysler forecast U.S. auto sales of 11.1 million vehicles for the year, which would be down from 16.1 million in 2007.

Merger, Alliances

A merger or alliances with other automakers might generate $3.5 billion to $9 billion in annual savings and is “fundamental” to its plan, Chrysler said, adding that it could remain a viable standalone company. Its plan assumes being awarded $6 billion in government loans for upgrading plants to produce more fuel-efficient vehicles.

Chrysler also forecast building 500,000 electric-drive vehicles in 2013, after producing the first model in 2010.

Ford’s proposal includes investing about $14 billion in the next seven years to improve vehicle fuel efficiency. Mileage will rise 14 percent for its fleet of 2009 models from 2005, and 36 percent for 2015 models, the company said. Ford plans to have a group of gasoline-electric and all-electric vehicles by 2012.

The second-largest U.S. automaker in its statement also calls for focusing on its namesake brand through efforts such as exploring the sale of its Volvo unit.

“There is very little in the way of new initiatives” in the proposal, Credit Suisse Securities analyst Christopher Ceraso said in a note. “Most of the document submitted to the Congress is an outline of the company’s existing plan.” He rates Ford shares “neutral.”

The company reiterated that it’s canceling management bonuses worldwide in 2009, and for all employees in North America. Ford also said it’s in talks with the United Auto Workers on further labor-cost reductions.

Union Meeting

The UAW called an emergency meeting for tomorrow to consider concessions that make it less costly to cut jobs, people familiar with that session said.

Ford, which isn’t as desperate for financial aid as GM and Chrysler, said that as of Sept. 30 it had $19 billion in cash and $11 billion in available credit lines. The company is taking steps such as reducing capital spending to improve its cash position by $14 billion to $17 billion through 2010.

The automaker also said the number of U.S. Ford dealers by the end of this year will be down 14 percent from 2005 “to increase efficiency and promote mutual profitability.”

The auto companies must show that their plans will enable them to repay the proposed U.S. loans, White House spokeswoman Dana Perino said today.

“We are sticking to our guns in that these companies need to prove they are viable,” Perino told reporters traveling to Greensboro, North Carolina, with President George W. Bush.

To contact the reporters on this story: John Hughes in Washington at Jhughes5@bloomberg.net; Jeff Green in Southfield, Michigan, at jgreen16@bloomberg.net

Last Updated: December 2, 2008 19:05 EST