GM mulls divestitures in search for cash

DETROIT, March 30 (UPI) -- General Motors Corp. is considering more asset sales to generate badly needed cash.

An investor group led by Cerberus Capital Management is talking with GM about paying as much as $11 billion to buy a 51-percent stake in its GMAC unit, The Wall Street Journal reported Thursday.

The carmaker also is talking with potential buyers about selling its 8-percent interest in Isuzu Motors Ltd. for an estimated $340 million.

The divestitures would come as the automaker's debt ratings continue in a virtual free-fall and a looming strike at key supplier Delphi Corp. -- perhaps as soon as Friday -- threatens a shutdown of GM.

Besides selling assets GM also said it has cut research and development. Larry Burns, head of research and planning, said GM cut planned R&D spending 12 months ago, the Financial Times said.

More cash flow problems loom. GM said the bill for 17,500 job losses announced last year could soar from $1.8 billion before tax to $6.6 billion if it fails to secure union agreement to change a controversial "jobs bank" which pays idled workers.