Ford Motor (F) and General Motors (GM) and Chrysler called on Congress to give them each billions of dollars in loans, arguing the funding is what’s needed to turn around the struggling auto industry.

Ford was first out of the gate, announcing plans that call for the government to give it $9 billion in bridge financing. Ford said it may not have to access the loan should it be approved.

In a press release Tuesday, the Detroit, Mich., vehicle maker said it doesn’t anticipate a liquidity crisis in 2009, barring a bankruptcy from a domestic competitor or a more severe downturn. The company said if it needs to access funds from a government bridge loan, Mulally would work for a salary of $1 a year. Ford also said it will sell its corporate aircraft as part of its overall cash improvement plan.

“For Ford, government loans would serve as a critical backstop or safeguard against worsening conditions, as we drive transformational change in our company,” said Alan Mulally, chief executive of Ford.

GM, on the other hand, said it needs a total of $18 billion in term loan and revolving credit facilities.

GM said it needs an immediate $4 billion loan to ensure minimum liquidity levels through the end of December, a second $4 billion loan in January of next year to ensure adequate liquidity balances through the end of January and a third $2 billion loan in the February/March time frame. The company also wants a $6 billion committed line of credit from the Federal Government to ensure adequate liquidity under more severe U.S. conditions.

GM called for the creation of a Federal oversight board to monitor and authorize the timing and the amount of loan withdrawals. The company said its CEO will take a $1 salary and that the dividend will be suspended until GM pays back the loans.

“The net effect of the operational and financial restructuring elements contained in the plan will be a company that is profitable (at an EBIT basis) in a U.S. industry with annual sales between 12.5-13 million units,” said GM in its proposal. “Given the very significant operating leverage in the automobile business, this means a restructured GM would realize healthy profits in a more typical 16 million unit year and be able to self-fund its operations long-term.”

Chrysler, according to Reuters, is asking for a $7 billion bridge loan from the government by the end of December. The private car maker said owner Cerberus will work with the government to provide collateral and secure taxpayer funding. The company could offer the government warrants, preferred stock and/or other equity. While Chrysler said without the bridge loan it could fall below the minimum cash needed to operate in the first quarter of next year, it said bankruptcy is not an option. Chrysler’s CEO Robert Nardelli would get a $1 salary like Ford’s CEO.

The Wall Street Journal reported this afternoon that the head leaders of the United Auto Workers union are telling some officials that GM may have to file for Chapter 11 bankruptcy before Christmas if the government doesn’t intervene and provide funding.

“The requested Federal assistance will materially help resolve this uncertainty, stabilize the company, and enable GM to execute its restructuring plan,” said GM. “Such assistance also helps the company achieve a viable and sustainable capital structure by early 2009. Importantly, as part of this restructuring, GM will preserve the status of existing trade creditors, and honor terms and provisions of all outstanding warranty obligations to both consumers and dealers, in the U.S. and globally.”

GM reiterated that a bankruptcy of the company would depress sales of its cars and the resale value of its vehicles as well has negatively impact the U.S. economy. GM warned a failure of the company would likely trigger “catastrophic damage to the U.S. economy,” and potentially results in 3 million jobs within a year of its collapse.

“The plain fact is bankruptcy of an auto company is markedly different and much riskier than that of a steel company or an airline, with the potential for: lengthy delays, given the number of stakeholders; significant administrative costs; the very real risk of the lack of funding while in bankruptcy; and the stigma attached to our products in the eyes of consumers,” said GM.

GM’s plan calls for 22 of its 24; new vehicle launches between 2009 and 2012 to be of more fuel efficient cars and crossovers, full compliance with the 2007 Energy Independence and Security Act and full labor cost competitiveness with foreign manufacturers in the U.S. by no later than 2012.

As for Ford, part of its plan submitted to Congress calls on Ford to explore strategic options for Volvo, including a possible sale of the Sweden-based auto maker. The company said its expects both its overall and its North American automotive business pre-tax results to be break even or profitable in 2011, excluding any special items.

Ford also said its plan calls for an investment of about $14 billion in the U.S. on advanced technologies and products to improve fuel efficiency in the next seven years.
The company plans to accelerate vehicle electrifications for a family of hybrids, plug-in hybrids and battery electric vehicles. The plan includes a Ford full battery electric vehicle [BEV] in a van-type vehicle for commercial fleet use in 2010 and a BEV sedan in 2011. Ford also said it would sell its corporate aircraft as part of its plan to improve its cash position.

According to Ford, it will improve the fuel economy on its largest light duty trucks to its smallest cars. Ford said it will improve the fuel economy of its fleet an average of 14% for 2009 models, 26% for 2012 models and 36% for 2015 models – compared with the fuel economy of its 2005 fleet. Overall, Ford expects to achieve cumulative gasoline fuel savings from advanced technology vehicles of 16 billion gallons from 2005 to 2015.

Ford said in its press release that it’s engaged in talks with the UAW about reducing the cost structure further and eliminating the remaining labor cost gaps that exposits between Ford and the transplants.

By the end of the year Ford estimates it will have 3,790 U.S. dealers, a reduction of 606 dealers overall – or 14% from 2005 – including a reduction of 16% in large markets. In addition, Ford has been able to reduce the number of production suppliers eligible for major sourcing from 3,400 in 2004 to approximately 1,600 today, a reduction of 53%. Ford eventually plans to further reduce the number of suppliers eligible for major sourcing to 750.

Chrysler said it expects to generate cash in 2010 with government support and that it expects to post an operating profit from 2009 to 2012. The company said it could realize cost synergies of $3.5 billion to $9 billion from an alliance or consolidation with a competitor.