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01:49 p.m. EDT, December 15, 2008
In an article by Bill Vlasic for The New York Times the extent of General Motors' efforts to save money are highlighted, including turning off the lights, escalators, and elevators at corporate headquarters every night.
"This cost-cutting has touched every aspect of the company," said Mark LaNeve, North American sales and marketing head for the company. "But my people are working until 8 p.m. and need the elevators to stay on."
Currently both GM and Chrysler are in something of a state of limbo. After the Senate voted down an auto bailout, the carmakers' last hopes are on the White House, which has the option of pulling $14 billion to $15 billion from the $700 billion financial sector bailout to help the companies survive.
In the meantime, Chrysler has closed cafeterias and executive dining rooms, opting for less expensive office supplies, lowering thermostats, and cutting inventory on items like factory replacement parts.
In the same vein, the North American International Auto Show to be held in Detroit in January will offer few amenities with no free food and drinks and no expensive marketing extravaganzas.
Without help from the Bush White House, both GM and Chrysler could be out of operating capital by the end of the year. Although they insist filing for bankruptcy is a matter of last resort, the failure of one or both could ignite a wave of subsequent failures in dependent industries like parts manufacturing.
For now, however, GM's executives have made it clear that there will be no extras and Chrysler's Robert L. Nardelli emailed employees Friday saying, "We must eliminate every unnecessary cost in every aspect of our business. While a bridge loan is critical to manage through this financial crisis, we must continue to manage the factors under our control."




