Pursuing U.S. Aid, G.M. Accepts Need for Drastic Cuts

WASHINGTON — General Motors, increasingly desperate for a federal bailout to stave off financial collapse, told Congress on Tuesday that it was willing to drastically shrink every aspect of its operations to ensure its long-term survival.
On the same day that the industry reported its worst sales month in 26 years, the three Detroit automakers delivered new business plans to lawmakers in the hope of winning support for $34 billion in federal loans.

While the timing was coincidental, the dismal November sales report underscored the perilous financial condition of G.M., the Ford Motor Company and Chrysler.

Their combined loan request was substantially higher than the $25 billion that the three companies had initially hoped to get from Congress two weeks ago.

The House speaker, Nancy Pelosi, said on Tuesday that she had spoken with President Bush by phone on Monday about the need to help the auto industry and that she believed some sort of rescue would be provided, either legislatively or by the Bush administration.

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