GM Generali

Generali (AQEU:GM)
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General Motors Corp. (GM), after slashing costs deeper than anticipated this year and negotiating a money-saving labor deal with its Canadian union, will turn its attention to winning additional government aid as it works to avoid a bankruptcy, the company's finance chief said.

GM Chief Financial Officer Ray Young, in a video on GM's Web site, said the company is responding to frequent requests for information from President Barack Obama's automotive task force. The group, which visited Detroit on Monday, will determine whether GM and Chrysler LLC get the $21.6 billion in additional loans the companies say they need to stay afloat.

GM has received $13.4 billion since December; Chrysler got $4 billion.

GM on Monday told the task force it can survive for now without the $2 billion the auto maker initially said it would need in March to avoid running out of cash. "When we look at the first two months of results, we're seeing our company-wide cost reductions are working," Young said.

He said the company is working closely with the task force as it weighs auto maker aid requests.

"We're working with their staff in order to help them arrive at some conclusions as to how they're going to help support the automotive industry in the United States," he said.

He said a deal ratified on Wednesday by the Canadian Auto Workers union will get Canadian labor costs almost in line with the company's U.S. operations.

The new deal freezes wages for active workers and pension payments for retirees. Workers will get less time off and forgo cost-of-living pay increases. In addition, retirees for the first time will make co-payments for health care.

GM now hopes to secure loans from the Canadian government, which has said it would only deliver aid if GM cut labor costs.

-By Sharon Terlep, Dow Jones Newswires; 248-204-5532; sharon.terlep@dowjones.com.