General Motors Corp warned Friday that it was running out of the minimum cash it needs to operate till the end of the year, and posted third-quarter operating losses of 4.2 billion dollars, dpa reported.
GM, the largest US automaker, has sought federal aid to avoid a collapse. The company said it needs at least 11 billion dollars in cash each month to pay its bills.
In the third quarter, GM used 6.9 billion dollars in cash and said it could fall below the minimum it needs to operate for the rest of the year.
The company said that in the first half of next year its "estimated liquidity will fall significantly short" of what it needs to keep operations running.
GM also also suspended merger talks with Chrysler LLC, Bloomberg financial news agency reported.
While GM announced a series of job and spending cuts to boost its cash reserves by 5 billion dollars, it said this might not be enough to tide it over the ongoing crisis in the ailing auto industry.