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GM needs billions over next two years to handle debts

General Motors will need to raise approximately $9 billion (£4.62bn) over the next two years in order to refinance its debt.

Brian Johnson, an analyst from investment bank Lehman Brothers, said GM could seek more money to cover $11bn (£5.7bn) in working capital as it faces ‘production headwinds’.

Fitch Ratings, the international credit ratings agency, said both GM and Ford will continue to face heavy cash drains in 2008 and are likely to burn cash through 2009 unless industry sales rebound.

Fitch said: "GM will likely see its liquidity eroded due to operating losses in the North American market and restructuring costs. As a result the company faces the risk of another ratings adjustment."

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