GM to lay off more workers as firm faces cash crunch

General Motors Corp. plans to lay off another 1,900 workers at parts stamping, engine and transmission factories in North America as it cuts expenses to deal with a worsening cash crisis, according to U.S. securities filings.

The largest U.S. automaker said in a filing with the U.S. Securities and Exchange Commission on Monday that the layoffs, which will occur in the first three months of 2009, are a result of declining sales. GM's overall sales in the third quarter were $37.9 billion US, down sharply from $43.7 billion US, in the same period a year ago.

GM spokesman Tony Sapienza said the cuts are in addition to Friday's announcement of 3,600 factory layoffs, including 500 at a plant in Oshawa, Ont. He declined to say which plants will be affected by the new round of layoffs. GM has 26 powertrain and 22 stamping plants in North America.

The layoffs will be indefinite, but there will be no plant closures, he said.

GM reported a $2.5-billion US third-quarter loss on Friday and said it may run out of cash before the end of 2008.

GM's stock hit a 62-year-low of $3.02 on the New York Stock Exchange on Monday after analysts downgraded the company on liquidity concerns.

Deutsche Bank AG lowered GM's equity value to zero from $4 US, saying the automaker may not be able to fund operations beyond December.

On Saturday, top U.S. congressional Democrats asked Treasury Secretary Henry Paulson to consider aid to the big three carmakers including Ford Motor Co. and Chrysler LLC through the financial bailout initiative that has so far covered banks and other financial services companies.