Financial Times FT.com

Auto crunch

GM warns of cash shortage

By Bernard Simon in Toronto, John Reed in London and James Politi in Washington

Published: November 7 2008 19:07 | Last updated: November 7 2008 19:07

General Motors warned on Friday that it will run out of the cash necessary for its business to function in the first half of next year unless conditions improve or it can raise extra funds.

The world’s biggest carmaker said its cash reserves had dipped to $16.2bn at end-September, from $21bn three months earlier. This year it said it needed a minimum of $11bn-$14bn to maintain normal working capital.

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