Saturday, November 8, 2008
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Gwinnett Daily Post
DETROIT, Mich. - General Motors Corp. reported a $2.5 billion loss in the third quarter and warned Friday that it could run out of cash in 2009 if the U.S. economic slump continues and it doesn't get government aid.
GM also said it has suspended talks to acquire Chrysler. While it didn't specifically name the automaker, GM said it was setting aside considerations for a 'strategic acquisition.'
'While the acquisition could potentially have provided significant benefits, the company has concluded that it is more important at the present time to focus on its immediate liquidity challenges and, accordingly, considerations of such a transaction as a near-term priority have been set aside,' the company said in a statement.
Privately held Chrysler said it won't comment on GM's statement, but added it remains focused on returning to profitability.
GM said its cash burn for the quarter accelerated to $6.9 billion, and government aid will be 'essential' because of the slow economy and credit crisis.