Detroit's Big New Bailout Bill

Detroit automakers laid out their worst-case business scenarios for Congress Tuesday, asking for up to $38 billion in taxpayer loans to survive the economic crisis and turn their companies around.

General Motors (nyse: GM - news - people ) is seeking up to $18 billion, Chrysler wants $7 billion and Ford (nyse: F - news - people ), which says it doesn't need a loan at the moment, is asking for a $9 billion line of credit--perhaps as much as $13 billion--in case the economy worsens.

The requests, filed Tuesday on Capitol Hill, were accompanied by extensive details of how the automakers plan to reduce labor costs, streamline products and restructure their balance sheets in order to return to profitability.

Chief executives from each of the companies will answer questions about their viability plans when they appear before Senate and House committees later this week.

America's carmakers have been steadily downsizing for years in an effort to become more competitive with foreign-based rivals. But the crisis that has brought at least two of them--GM and Chrysler--to the brink of bankruptcy is an opportunity to take more drastic measures.

Indeed, GM said it would cut its current stable of brands from eight to four--dumping Saturn, Saab and Hummer, and paring back Pontiac to a few niche models. GM also expects to reduce the number of dealers from 6,450 to 4,700 by 2012.

GM also plans to close nine powertrain, stamping and assembly plants in the U.S. by 2012, and reduce its total U.S. employment to between 65,000 and 75,000, from 97,000 today.