DETROIT, Mich. — General Motors Corp. reported a $2.5 billion loss in the third quarter and warned yesterday that it could run out of cash in 2009 if the U.S. economic slump continues and it doesn't get government aid.

GM also suspended talks to acquire Chrysler. While it didn't name the automaker, GM said it was setting aside consideration of a "strategic acquisition."

"While the acquisition could potentially have provided significant benefits, the company has concluded that it is more important at the present time to focus on its immediate liquidity challenges and, accordingly, considerations of such a transaction as a near-term priority have been set aside," the company said.

GM said its cash burn for the quarter accelerated to $6.9 billion, and government aid will be "essential" because of the slow economy and credit crisis.

If companies run out of cash, generally they can sell assets, cut costs or file for bankruptcy protection to keep creditors at bay while they develop a financial reorganization plan.

But in a conference call with reporters and analysts, GM chairman and CEO Rick Wagoner said the company will "take every action we possibly can" to avoid bankruptcy.

"We're convinced that the consequences of bankruptcy would be dire," he said.

"We need to find a way to get through this, and that's really our focus."

The company also said it will indefinitely lay off about 3,600 workers beginning early next year as it slows production at 10 assembly plants.

The news came hours after Ford Motor Co. reported that it lost $129 million in its third quarter and will cut about 2,260 more white-collar workers in North America as the industry tries to weather the worst economic downturn in decades. As U.S. and global economies have rapidly deteriorated, auto sales have nearly shut down.

Wagoner had said in a statement earlier that the third quarter "was especially challenging for the auto industry."

"Consumer spending, which represents close to 70 percent of the U.S. economy, fell dramatically, and the abrupt closure of credit markets created a downward spiral in vehicle sales," he said.

The nation's biggest domestic automaker reported a net loss of $4.45 per share for the quarter, compared with a record-setting loss of $39 billion, or $68.85 per share, a year ago. Its adjusted loss was $4.2 billion, or $7.35 a share, with an adjusted loss of $2.8 billion for its automotive operations.

Revenue fell to $37.9 billion from $43.7 billion, due largely to credit freezing around the globe.

The loss exceeded Wall Street estimates. Analysts surveyed by Thomson Reuters had predicted a loss of $3.70 per share on sales of $39.4 billion.

The struggling company announced it will improve liquidity by $5 billion by the end of next year by cutting capital spending, reducing sales promotions, and further cutting production in the first quarter.

The company also suspended its matching contribution for employee 401K plans. In addition, salaried employees will not get incentive pay next year for their work in 2008, GM said.

It said it will slow down assembly line rates at North American factories next year, but gave no details. It said several new vehicle programs will be delayed, but that it will spend more on its Chevrolet Volt electric car and other fuel-efficiency programs.

The cuts and delays may not be enough.

"Even if GM implements the planned operating actions that are substantially within its control, GM's estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business," the company said.

The automaker had a net gain of $1.7 billion in the quarter, including a $4.9 billion gain from shifting its retiree healthcare expenses to a union-administered trust starting in 2010.

But the healthcare gain was offset by a $1.7 billion noncash charge for elimination of salaried retiree healthcare benefits, plus $652 million for Delphi's bankruptcy proceedings, $251 million for writedowns at its financial arm, GMAC LLC, and $641 million in restructuring-related and other charges.

GM owns 49 percent of the money-losing GMAC, with the remainder owned by Cerberus Capital Management LP.

Cerberus also owns a majority stake in Chrysler, and has reportedly been in talks about selling the Chrysler auto operations to GM, possibly in exchange for a part of GM's stake in GMAC .

Ford said in its earnings report earlier in the day that it burned through $7.7 billion in cash in the third quarter.

Its global automotive operations had a $2.9 billion pretax loss in the quarter, compared with a pretax loss of $362 million a year earlier.

Sales fell 22 percent to $32.1 billion from $41.1 billion because of lower volume and the sale of Jaguar and Land Rover.

"While Ford has been dramatically affected by the difficult business environment, we remain absolutely convinced that we have the right plan and are taking the right actions to weather this difficult period and emerge as a lean, globally integrated company poised for long-term profitable growth," CEO Alan Mulally told industry analysts in a teleconference.