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GM is burning $2bn a month

General Motors has announced a further series of measures to cut costs as it admitted it is burning $2bn cash a month to survive.

The moves include putting merger talks with Chrysler on hold and cutting another 2,000 salaried jobs and 3,600 hourly workers.

It will also cut another $5bn in costs in addition to the $10bn cuts announced in July, and raise another $5bn through debt and asset sales.

The carmaker reported a net loss of $2.5bn in the third quarter and burned through $6.9bn cash to end the quarter with $16.2bn cash remaining.

Bankruptcy not an option

GM has said it needs $11-14bn cash to remain operating.

Chairman and chief executive Rick Wagoner said the company will take every step to avoid bankruptcy.

Measures taken to achieve the extra $5bn savings will include slashing capital spending in 2009 and making cuts to structural costs.

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