Automakers were “deserving” of as much as $50 billion in government-backed loans so that they can build more fuel-efficient cars, said a top General Motors executive. Robert A Lutz vice-chairman of General Motors said the car companies need money to retool their plants but probably cannot raise enough capital on their own because of the tight credit markets. Lutz also said the automakers have already made considerable progress in transforming themselves and that the government should help them proceed faster.

Lutz told reporters at an event near Chicago where General Motor showed off it 2009 line up that “The American auto industry is deserving of government loan guarantee,” “We have done a whole bunch of things that people said, ‘Why aren’t you doing this?’” Automakers and along with the United Automobile Workers union and lawmakers are urging Congress to appropriate $3.75 billion to back the $25 billion in loans authorized last year.

Detroit carmakers have announced plans to revamp numerous truck plants so that they can build the smaller cars and crossover vehicles. Costs of each conversion are ranging from $75 million at a Ford plant. Sales of pickups and SUVs plummeted this year as gasoline prices climbed above $4 a gallon in much of the United States. Automakers have been offering substantial discount on some models and shutting down plants that make them to keep inventories from growing larger. July, large SUV sales were down to 42% and full size pickup trucks sales declined to 28%.

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