Shares of General Motors hit a 60-year low today on market worries that the automotive giant will burn through their cash reserves in the first quarter of 2009. The Company has a $6.9 billion burn rate. With the current cash on hand number being $16.2 billion, you can see that the situation is ugly. To make the picture even uglier, Standard and Poor’s cut GM’s credit rating on Friday from B- to a CCC+. If GM can’t complete asset sales, raise money in the financial markets, or get government assistance, the company will be short next year. A financial collapse isn’t out of the question.

CEO G. Richard Wagoner Jr., said, “At this time, it’s important that we put our emphasis on liquidity. Liquidity is a top priority for the company and the industry.” To begin, the company will save $5 billion in 2009 by cutting $2.5 billion from capital spending and reducing more salaried staff and benefits. Next, a massive round of layoffs, which will be made even worse if the company cannot secure an asked for $25 billion bridge loan for the retooling of their factories to make more fuel efficient cars. Lastly, GM has called for government help in an attempt to take a bite out of the $700 billion bail-out.

Analyst Brian A. Johnson of Barclays Capital said that while additional government assistance will likely decrease the likelihood of a bankruptcy protection filing, it would also likely significantly dilute its equity. Separately, JPMorgan’s Himanshu Patel said he expects GM to receive some form of federal aid, but advised investors to be cautious given the uncertainty.

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