Despite its shares plunging to 58-year lows and a diminished outlook for global auto sales, General Motors (GM) told Reuters on Friday it is not considering filing for bankruptcy protection. 

"Clearly we face unprecedented challenges related to uncertainty in the financial markets globally and weakening economic fundamentals in many key markets," GM said.

"But bankruptcy protection is not an option GM is considering. Bankruptcy would not be in the interests of our
employees, stockholders, suppliers or customers."

The news sent shares of GM 10% higher on Friday, just a day after the auto maker lost almost one-third of its market cap and fell to the lowest level since 1950.

While GM says its not considering bankruptcy, it is considering announcing more production cuts and factory closures as early as next week, a source told the Associated Press. The plans are not finalized but will likely impact engine, transmission and stamping operations, the news agency reported.  

GM has been under enormous pressure for much of this year by high gasoline prices, recession threats and nearly-frozen credit markets. On Thursday, J.D. Power and Associates warned of a possible "collapse" in the global auto market in 2009.

The auto maker has $26 billion in total liquidity but has been burning through $1 billion each month. To counter those losses, GM unveiled a plan over the summer to raise $15 billion by selling assets and cutting costs.