Too little, too late for "green" Big 3?

By Peter Bohan

DETROIT (Reuters) - Automakers at the world's premier auto show have pinned their hopes on "green" models but for some companies the immediate future is shaping up as a battle for survival.

U.S. auto sales dropped by 18 percent in 2008 to a 16-year low of 13.2 million, pushing financially strapped General Motors Corp and Chrysler to the brink of collapse.

In December the two were approved for $17.4 billion in emergency government loans. But the money has conditions that must be met as early as March and include more concessions from the United Auto Workers union and company debt holders.

"People are wondering, 'Is the company going to make it? Is the company going to be viable?'" GM Chief Operating Officer Fritz Henderson told reporters at the Detroit auto show.

Henderson, vice chairman Bob Lutz and other GM executives said they were confident GM could make the changes it needs to turn itself around with U.S. government support. But they also indicated they could need further help along the way.

Ford Motor Co has not asked for government loans but told lawmakers last year it wanted a $9 billion line of credit from the government in case the U.S. economy worsens.

"We still believe there is a good chance for a recovery starting in the second half," Ford's Chief Financial Officer Lewis Booth said on Monday.

Display rooms at the cavernous Cobo Center were filled as usual with dozens of shiny cars, trucks and other vehicles, with staff feather-dusting the models and media milling around a reduced number of exhibits.

A number of big automakers, including Nissan Motor Co, pulled out of the show this year to save money.

For those who remained, the stars of the show were a slew of new or improved fuel-efficient and eco-friendly "green" cars like the Toyota Prius and Chevrolet Volt, an all-electric sedan General Motors rolled out as a "concept" two years ago.

GM said it was on track to offer the revolutionary vehicle in November, 2010, and on Monday announced a major contract with Korean manufacturer LG Chem Ltd to make the batteries, the key to success for all new electric vehicles.

But uncertainty continued to trump hope for most.

Lutz, the biggest booster of the Volt, was asked if U.S. auto sales were going to recover to the 15-million unit level.

"Who the heck knows?" Lutz told reporters.

GREEN: TOO LITTLE, TOO LATE FOR BIG 3?