GM not planning Chap. 11

DETROIT -- General Motors Corp. chairman and chief executive Rick Wagoner told employees yesterday that the world's largest automaker has no plans to file for bankruptcy despite heavy losses in its North American division and the threat of a strike at Delphi Corp., its major supplier. GM shares climbed more than 6 percent, bouncing back from their lowest level in 18 years.

''I'd like to just set the record straight here and now: there is absolutely no plan, strategy, or intention for GM to file for bankruptcy," Wagoner said in a letter to employees, which was posted on an internal website.

Wagoner said GM has a clearly defined turnaround plan and ''a robust balance sheet," with $19 billion in cash and $16 billion in assets in a trust fund for retiree healthcare.

''The large losses at GM North America are unsustainable, for sure, and require a comprehensive strategy to address them . . . a strategy that must be implemented promptly and effectively, to get our US business profitable again," Wagoner said.

GM shares rose $1.34, or 6.3 percent, to close at $22.63.

But Wagoner's strategy isn't satisfying everyone, and some analysts say investors could soon run out of patience.

''If the company continues to go south the way GM is doing, it does raise questions about the confidence the board has in these people," said Gerald Meyers, the former chairman of American Motors Corp. who now teaches at the University of Michigan.