U.S. & World

DETROIT (CBS News) ― The United Auto Workers union and Detroit's three automakers reached a tentative agreement on contract concessions Tuesday, about the same time General Motors Corp. and Chrysler LLC filed restructuring plans to justify government loans.

But the union was unable to make a deal with GM, Chrysler and Ford on funding for a trust fund that will take over retiree health care costs starting next year.

Terms of the deal were not announced, but they were expected to eliminate the jobs bank in which laid-off workers get most of their pay, as well as make work rule and other changes that the government loan terms set out so the companies' labor costs are competitive with their Japanese counterparts that have U.S. factories.

Union President Ron Gettelfinger said in a statement that discussions are continuing with all three companies about billions of cash payments into the trust funds, called voluntary employees beneficiary associations.

Meanwhile, GM and Chrylser told the U.S. government they need even more taxpayer money to survive than originally thought.

GM's restructuring proposal says the company may need up to $30 billion in government loans as it implements a survival plan that includes cutting 47,000 jobs and closing five more U.S. factories.

The plan says GM will try to borrow up to $16.6 billion more from the government, on top of the $13.4 billion it has already received. With the restructuring, GM expects to start repaying the government in 2012 and fully pay off the loans by 2017.

GM says it has considered the option of bankruptcy, but the only credit available to finance a reorganization would be from the government, and it could cost as much as $100 billion.

CBS News correspondent Anthony Mason reports that GM's survival plan is to sell or shut down its Saturn and Hummer bands.

GM is also trying to get its bondholders to accept about 30 cents on the dollar for its $27 billion in outstanding debt, reports Mason.

"It's better than nothing," says auto analyst Rebecca Lindland. "And that's really the alternative that we're looking at is if GM and Chrysler go bankrupt, nobody gets anything."

Chrysler requested an additional $5 billion in government loans, acknowledging that industry conditions are worse than expected when it made the case in December for a government bailout. It originally said it would need $3 billion more. The company had previously received $4 billion from the Treasury Department.

If time is running out for Chrysler, you may not be able to tell at its company headquarters, reports Mason. The company removed most of the clocks to save $20,000 a year on batteries.

It's also removed half of the 80,000 light bulbs to save $400,000 a year and turned down the temperature in hallways by four degrees to save $70,000 a year, reports Mason.

To prove they can survive as viable companies, both Chrysler and GM need to sharply reduce costs. To that end, Chrysler said it will cut 3,000 more jobs and stop producing three vehicle models.

Chrysler said it now projects that automakers will sell 10.1 million vehicles in the U.S. this year, the lowest level in four decades.

Chrysler Vice Chairman and President Jim Press said in a conference call with reporters that the company will eliminate the Dodge Aspen, Durango and Chrysler PT Cruiser.

GM has previously outlined reductions to both its hourly and salaried work force and has said it plans to cut back to four vehicle brands from eight.

Employees at a GM plant in Michigan got word it will close months earlier than planned, reports Mason.

"Here I am, 46 and been working there for 20 years," said employee Lori Davis. "And I think, 'now what?'"

The plans still have to be vetted by Treasury and the new autos task force announced by the Obama administration Sunday night.

The news came on a day when President Barack Obama signed into law a massive economic recovery plan. Signs that the recession is deepening were more immediate for investors, however, and they dumped stocks and pushed oil prices sharply lower.

(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)