GM's Q2-ending cash better than forecast: CFO

DETROIT (Reuters) - General Motors Co's cash at the end of the second quarter was a little better than forecast and its liquidity remains in "a very strong position," Chief Financial Officer Ray Young said on Friday.

GM, which posted a $15.5 billion net loss for the quarter amid the downturn in the North American auto sector, had a negative cash flow of about $3.6 billion in the second quarter.

The automaker's decision to draw down some inventory resulted in an overstatement of negative cash flow in the quarter, Young told reporters. GM had $21 billion of cash and $5 billion of available credit at the end of the quarter.

"In reality, the $21 billion is a little better than I thought when we made the forecast," Young told reporters.

GM ended the second-quarter with inventory well below 800,000 units, and 800,000 units is a reasonable amount of inventory in the current market, Young said.

GM will defend its U.S. market share "on a profitable basis," Young said, adding that maintaining a 21 percent market share in the United State over the next three years would be "realistic."

Young said GM remains committed to leasing in the United States, albeit at lower levels with some cash incentives and retail financing offers to reduce the impact on sales.

GM announced plans in mid July to make $10 billion of cost cuts, plus asset sales and new borrowing to shore up its liquidity through the U.S. industry downturn. Some of those cuts include 20 percent of salaried expenses.

Young said GM was focused on percentage costs rather than specific head-count figures, but that a 15 percent reduction in salaried workers would probably be about accurate.

"From my perspective, we are going to get the second quarter behind us and just move ahead with our restructuring and liquidity plans that we announced over the last 60 days," Young said.

(Reporting by Kevin Krolicki and David Bailey; Editing by Derek Caney and Steve Orlofsky)