DETROIT -- General Motors gm said Friday it is not considering bankruptcy even as its shares drop to historic lows and fears about its liquidity continue as the global economic turmoil rages.
"Clearly we face unprecedented challenges related to uncertainty in the financial markets globally and weakening economic fundamentals in many key markets," the automaker said. "But bankruptcy protection is not an option GM is considering. It would not be in the interests of our employees, stockholders, suppliers or customers, and we believe speculation about a possible filing is exaggerated and unconstructive."
GM is expected to announce further production cuts as early as next week.
A person who did not want to be identified because the plans are not finalized told the Associated Press that the cuts likely will hit engine, transmission and stamping operations to correspond with a June announcement that GM would close four truck and sport-utility vehicle assembly plants.
The closure dates for those plants likely will be accelerated, the person said. GM announced last week that its Moraine, Ohio, SUV factory will close Dec. 23, and it has said it will idle assembly factories in Oshawa, Ontario; Toluca, Mexico; and Janesville, Wisconsin, by 2010.
Chairman and CEO Rick Wagoner said last month that GM would have to make adjustments, particularly in stamping factories.
GM stock was little changed Friday, but still near a record low.