INSTANT VIEW: Automakers', UAW restructuring plans

NEW YORK (Reuters) - The three major U.S. automakers and the United Auto Workers union announced a series of sweeping restructuring plans on Tuesday as the industry looks to plot a roadmap to survival.

In the largest of the plans, General Motors Corp said it could need a total of up to $30 billion in aid -- more than double its original aid -- and would run out of cash as soon as March without new federal funding.

GM and Chrysler are asking for billions of dollars in U.S. government aid, and warned that the current brutal downturn in U.S. auto sales will continue for the next few years.

The following are comments from market sources and analysts about the plans:

COMMENTS:

ALAN LANCZ, PRESIDENT, ALAN B. LANCZ & ASSOCIATES INC, TOLEDO, OHIO

"I think this is a perilous road. This is a situation where we really have to decide whether we are throwing good money after bad. The $30 billion is a lot higher than I expected they were going to ask for.

"They have to turn the operations around, otherwise they are going to be back asking for more aid, but not back as quickly since they are asking for that much, and that's probably their rationale in asking for more than people were expecting.

"It's a negative situation and that's probably why the announcement was late. It means they are not in agreement with the UAW on all the concessions they are asking for. I think bankruptcy is a viable option as opposed to just continuing with government funding."

LINCOLN MERRIHEW, TNS AUTOMOTIVE CONSULTING

"I'm curious to see how the government responds to this plan, but Chrysler has said all the right things. Overall, I'd give them an 'A'.

"If I were the government I'd ask Chrysler a few questions: A. Could you cut production further? One hundred thousand units seems small to me. B. Is Fiat willing to put more in and become a more engaged partner? C. Could there be more models that could be cut to improve sales per model? Is three models enough. I think it's pretty easy to come up with three models to cut that would have no impact on Chrysler's situation."

GREGG LEMOS-STEIN, AUTO ANALYST, S&P, NEW YORK

"We continue to believe that government support is not open-ended. Accordingly, in our opinion, even if this plan is approved and additional funding is provided, bankruptcy risk will remain high because of very uncertain consumer demand for light vehicles and other serious risks -- for example weak credit markets, and potential supplier failures.

"Our rating on Chrysler is 'CC' reflecting the prospects for a distressed exchange.

"In its plan, Chrysler outlined four alternatives for potentially reducing its first-lien debt. We would consider all of these distressed exchanges are akin to a default."

(Reporting by Ellis Mnyandu and Walden Siew in New York and Nick Carey in Chicago)