NEW YORK (AP) -- Shares of General Motors Corp. fell sharply on Friday as the broader market headed lower and talks continued between it and its crosstown rival Chrysler LLC.
Shares fell 83 cents, or 13.5 percent, to $5.27 in midday trading. It was the biggest percent loser on the Dow Jones industrials index.
The loss at the Detroit automaker comes amid a marketwide decline as fears of a global recession stoked anxiety among investors worldwide.
Meanwhile, GM and Chrysler's majority stakeholder, private-equity firm Cerberus Capital Management LP, remained locked in talks over Chrysler's future. While it has been reported that GM is seeking to acquire Chrysler, Cerberus has also been talking to the combined Nissan Motor Co.-Renault SA and others.
Earlier Friday, Chrysler said it was cutting 25 percent of its salaried work force starting next month. On Thursday, GM said additional white-collar cuts of its own would be needed.
U.S. automakers have been battered this year due to the steep decline in auto sales, exacerbated in recent months by volatile fuel prices, the rough economy and tight credit markets. Shares of GM have declined 75 percent year to date.
