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GM Announces Layoffs, Plant Slowdowns, Cash Flow Problems, Ends Chrysler Merger Talks

Saying that it is nearly out of operating cash, General Motors (GM) announced a $4.2 billion loss for the third quarter and warned that it "will approach the minimum amount necessary to operate its business" during the current quarter and that its "estimated liquidity will fall significantly short" of what it needs to continue operating during the first half of next year. In addition, CEO Rick Wagoner said that the speculated merger between GM and Chrysler will not take place: "While it's fair to say we conclude this acquisition could have provided significant benefits, we've concluded at this particular time that it's important we put 100 percent of our efforts on the immediate liquidity challenges." GM also announced that it would indefinitely lay off 3,600 workers and slow production at 10 plants between January 12 and February 9: Hamtramck, Orion Township, and Lansing, Michigan (two plants); Wentzville, Missouri; Oshawa, Ontario, Canada; Bowling Green, Kentucky; Lordstown, Ohio; Spring Hill, Tennessee; and Kansas City, Missouri.

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