GM is also asking for $16 Billion in government aide. Unfortunately it doesn’t look like any of that money will go towards the Saturn name.

From CNN:

General Motors Corp. (GM) said Tuesday it is counting on $6 billion in aid from foreign governments and could potentially need billions more from the U.S. government in coming years to cover pension obligations, even if it gets the additional aid it requested Tuesday.

GM, in a revamped restructuring plan submitted to the U.S. Treasury on Tuesday, said it needs up to $16.6 billion in federal assistance on top of the $ 13.4 billion in loans it’s received since December. A dramatic sales slide and worsening global economy forced the auto maker to accelerate and expand restructuring plans laid out when it asked for federal loans in December.

“We have to restructure the business so we can be viable at a sales level that is dramatically lower than what we ever anticipated,” GM Chief Executive Officer Rick Wagoner said at a news conference Tuesday. “We are still going at this with a great sense of urgency.”

The largest U.S. auto maker, which reiterated that bankruptcy isn’t a good option, is in talks with bondholders and the United Auto Workers to reduce $47 billion in debt obligations. Wagoner said the union agreed to concessions that take a “big bite” out of labor costs, but the two sides are still negotiating a deal that would change an agreement under which the union agreed to take over $ 20 billion in retiree obligations.

The auto maker’s latest plan involves deeper cuts than those outlined in December. Steps include shuttering 14 factories by 2012 rather than nine, eliminating 47,000 hourly and salaried jobs this year globally, and closing its Hummer truck brand this year and Saturn in 2011 if no alternatives arise. The company also said its Saab AB (SAAB-B.SK) unit could file for reorganization this month if the Swedish government doesn’t provide financial support.

Pension Fund Concerns

GM and Chrysler faced a Tuesday deadline to present their updated viability plans to U.S. authorities. Chrysler, which is surviving on a $4 billion federal loan, asked for an additional $2 billion on top of its original $7 billion loan request.

White House Press Secretary Robert Gibbs said late Tuesday that it’s clear more will be required of creditors, suppliers, dealers, unions and auto executives to ensure the viability of the companies.

Shares of GM were up one cent at $2.19 in after-hours trading. The stock was the biggest decliner among Dow Jones Industrial Average components in Tuesday’s regular session, falling 13%. Chrysler, owned by investment group Cerberus Capital Management, doesn’t have publicly traded shares.

Industry experts said the updated plans contained significant cost cuts, but warned that the economic environment will continue to cast a cloud over the prospects for the companies.

“Even if these plans are approved, and agreements with the union and lenders secured, bankruptcy risk will remain high because of very uncertain consumer demand and other serious risks such as potential supplier failures,” Standard & Poor’s credit analyst Gregg Lemos Stein said.

GM’s loan request includes $4.6 billion it hopes to draw in March and April. Additionally, the auto maker is asking for a $7.5 billion line of credit that could be drawn under a downside scenario and to defer repayment of a $4.5 credit line due in 2011.

The cost reduction and additional U.S. aid, however, won’t likely be enough to sustain the auto maker alone.

Under the survival plan, GM is counting on $6 billion from Canada, Germany, the United Kingdom, Sweden and Thailand by 2010.

GM also said it would begin repaying federal loans in 2012, though it might need more money in 2013 and 2014 if it needs to contribute to U.S. pension plans. The auto maker’s pension fund had a surplus, but diminishing returns along with draws on the fund to cover restructuring have diminished the reserves.

Additionally, the plan depends on $7.7 billion in funding from the Department of Energy under a program to incentivize auto makers and suppliers to develop fuel-efficient vehicles. The DOE, however, is waiting for the Treasury’s opinion of GM’s viability plan.

Companies Say Bankruptcy Not Good Option

Despite auto makers’ deepening needs, both companies on Tuesday vigorously argued against Chapter 11 bankruptcy reorganizations, as some on Wall Street have advocated.

GM said a bankruptcy restructuring would cost as much as $100 billion; Chrysler put the cost at $20 billion to $25 billion.

“We looked at ‘What are the risk and opportunities of a bankruptcy?’” said GM Chief Operating Officer Fritz Henderson.

GM, which has been in restructuring mode for four years, said its need for government support is driven by the global financial market crisis, the dramatically weaker economy and the precipitous decline in vehicle demand.