UPDATE: GM's Cash Level Stable For Now

By Shawn Langlois

DETROIT (Dow Jones) -- General Motors Corp. executives beamed with confidence during the first two days of the North American International Show in Detroit, but they weren't about to tell the U.S. government that it can safely turn off the cash spigot.

In fact, GM (GM) President Fritz Henderson on Monday said the "baseline plan" submitted last month paved the way for a total of $18 billion in a worst-case scenario. And he declined to speculate as to whether or not the additional $4.6 billion would need to be tapped.

"We'll develop our plan ... then we'll present it. We'll make judgments from there," he said ahead of GM's press conference. "It was pretty clear that the requirements were beyond, at that point, $12 billion for a continued downside scenario."

A day earlier, GM CEO Rick Wagoner said the $13.4 billion will sustain the company through the first quarter, but wouldn't comment on what the next move could be should the traumatized U.S. car market continue it's tailspin.

The industry earlier this month posted its lowest annual sales number since 1992 and forecasts are calling for an even more difficult 2009.

Under the terms of the current loan, GM will need to show the government by the end of the first quarter that it can be viable going forward or the loans may be called in. Key issues include GM's ability to hammer out labor concessions and slash its debt load.

"We've demonstrated an ability to work with the UAW ... the UAW has been part of the solution not part of the problem," Henderson said. "I'm a realist, but I'm also optimistic on this that we'll find a solution."

GM, as it maps out its plan, will operate under the assumption that oil will trade in a range of $130 to $160 a barrel, according to Henderson.

"As the economy over time recovers we think we would see upward movement in the price of oil ... it could be sharp," he said. Hence GM's fuel-efficient theme to the show.

GM on Sunday emphasized the promise of a "smarter, smaller and more fuel-efficient" future by rolling out of mostly high-mileage cars, including its plug-in electric Chevy Volt, due out next year and a concept electric Cadillac called the Converj.

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