GM and Chrysler to cut 50,000 jobs

General Motors and Chrysler have unveiled plans to cut 50,000 jobs and revealed they will need a further $21.6 billion (£15.2 billion) in state aid.

The United States car giants last night submitted their restructuring plans to the treasury, with GM and Chrysler claiming they could return to profit in two and three years respectively.

GM says it will close five factories, cut 27,000 jobs - 20,000 in the States - and halve its number of brands to four: Chevrolet, Buick, Cadillac and GMC.

The Detroit-based group, which has already received $13.4 billion (£9.4 billion) from the treasury, says it needs a further $16.6 billion (£11.7 billion).

"We have a lot of work in front of us, but I am confident it will result in a profitable General Motors," said GM chief executive Rick Wagoner.

Chrysler meanwhile said it would cut 3,000 jobs but would need an extra $5 billion (£3.5 billion) on top of its $4 billion (£2.8 billion) bailout already agreed.