General Motors has said it is running out of money and may not have enough cash to continue operating this year. The biggest US carmaker, hit by a massive slump in sales, posted a worse-than-expected 3.3 billion euros operating loss in the third quarter, when it burned through nearly 5.4 billion euros in cash.
GM plans to cut more management and office jobs and said it is no longer interested in merging with Chrysler. Things were almost as bad at Ford. It announced a worse-than-expected quarterly loss of 2.3 billion euros. It got through six billion euros in that time, but said it expects to spend less in the final three months of the year and believes it has enough cash reserves.
Ford said it is going to sell more assets – but not Volvo – and trim its wages bill with further more redundancies and other measures such as reduced pension contributions. In October, car sales in the US fell to their lowest in 25 years.