CHICAGO, Nov 8: General Motors, the biggest US-automaker, warned on Friday that it would run out of cash in the first half of next year and appealed to the US government for help to save it from collapse.

On a dramatic day for the ailing Detroit giant, the company also said it had suspended takeover talks with struggling peer Chrysler and reported a deepening of its cost-cutting plan in the wake of steep financial losses.

Trading in GM shares, which had been suspended after a delay in the scheduled financial results release, plunged more than 11 per cent to $4.27 in late trade.

GM’s estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business, the company said in a statement giving its starkest warning yet.

Looking into the first two quarters of 2009, even with its planned actions, the company’s estimated liquidity will fall significantly short of that amount, it said.

GM has taken a host of aggressive ‘self help’ actions to improve its business, but additional support from the US government to aid the auto industry during this industry downturn is essential, the company said.

Congress recently authorized 25 billion dollars in loan guarantees to help US automakers develop more fuel-efficient vehicles in order to meet upcoming regulations.—AFP