General Motors announced today that it has suspended talks with Chrysler about a possible merger. GM also announced that its third quarter losses were about $25 billion, and said that it could run out of cash before the new year.
“The third quarter was especially challenging for the auto industry,” GM Chairman and CEO Rick Wagoner said. “Consumer spending, which represents close to 70 percent of the U.S. economy, fell dramatically, and the abrupt closure of credit markets created a downward spiral in vehicle sales.”
GM announced plans to improve liquidity in 2010 by cutting back in just about every way. Spending, promotions and production will all be cut. GM also announced that 3,600 workers will be laid off when production is slowed at 10 factories. The automaker’s 401(k) matching and tuition reimbursement plans for employees have also been suspended, according to MSNBC.
With GM running out of money and a breakup of Chrysler likely, will Ford be the only U.S. automaker left in 2010?
GM’s massive Renaissance Center.
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