GM grapples to avoid filing bankruptcy as cash vanishes

General Motors Corp., for 77 years the world's largest automaker and an icon of American industry, revealed a dire financial outlook Friday that has the company teetering on the edge of bankruptcy.

Ford Motor Co. delivered its own grim forecast -- although not immediately as dire as GM's position.

Hemorrhaging cash and with sales dropping to 25-year lows last month, the Detroit automakers announced financial results that show they each are burning through more than $2 billion a month to maintain operations. GM warned that its cash reserves could sink below the minimum level it needs to operate by year's end unless it gets federal aid or can tap other resources.

GM Chairman and Chief Executive Officer Rick Wagoner said the company will take every step possible to avoid bankruptcy -- which GM continues to insist is not an option -- as the automaker attempts to survive the squeeze of a global credit crunch on vehicle sales.

"We're convinced that the consequences of bankruptcy would be dire," Wagoner said. "We need to find a way to get through this, and that's really our focus."

GM, Ford and Chrysler LLC are seeking federal loans to help them weather the financial crisis and move forward to retool their companies.