General Motors Corp warned the US government on Tuesday that it needs a $4 billion loan by the end of December or else it faces the risk of immediate failure.

"The first $4 billion is crucial," GM's Chief Operating Officer Fritz Henderson said. "There is no Plan B."

The loan would be part of $18 billion in federal aid being requested by the company. GM said it needs another $8 billion by March, and a $6 billion credit line that would be available until 2012 in case US auto sales drop beyond its expectations.

The stark admission that GM could fail came as the company presented a turnaround plan that had been demanded by lawmakers as a condition of reopening the debate about financial assistance for Detroit automakers GM, Ford and Chrysler.

In exchange for government funding, GM said it would undertake a sweeping restructuring, pushing its major union, dealers and creditors to accept the kinds of cost-saving contract changes that companies typically seek in bankruptcy.

GM, which has cut costs for nearly four years as US sales declined, said it was prepared to cut jobs, dealers and brands. It said it would try to sell Saab, phase out its mass-market Pontiac brand and talk to Saturn dealers about discontinuing that brand.

With Hummer already being shopped, that would leave GM with the more profitable Chevrolet, Cadillac, Buick and GMC brands, and a more focused strategy.

GM said it would look to reduce its debt by almost $36 billion by asking bond holders to swap out of existing debt, and that it would negotiate new terms for its planned $21 billion contribution to a health care trust fund run by the United Auto Workers union. In so doing, GM plans to cut its debt to $30 billion, Henderson said.

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