General Motors Corp.'s (GM) liquidity has plunged below $10 billion, a person familiar with the situation said Monday, underscoring how broken the auto maker's business model had become amid plunging auto sales and tough competition from global auto makers.

The a newly bankrupt auto maker's cash levels are now well below how much it would need to operate on its own. Without the $20 billion in U.S. government loans GM received, the picture would be far worse.

GM had more than $24 billion in liquidity at the end of the first quarter a year ago, as the company's non U.S. operations helped offset multi-billion dollar losses in North America. At the end of March, GM had $11.6 billion in liquidity that was largely offset by federal loans.

The auto maker's cash burn accelerated in the last year as it slashed production and grappled with a global sales slump.

GM's restructuring plans, as dictated by the Obama administration, call for slashing GM's $74 billion in debt to $17 billion.

As part of the plan, GM's secured lenders would get par recovery. The company isn't anticipating tension from the lenders, the person familiar said.

When the "New GM" emerges from Chapter 11, this person said, most of the company's suppliers contracts will remain intact.

GM, which suggested it may move its headquarters from Detroit's Renaissance Center, will remain in the beleaguered city, this person said.

-By Sharon Terlep, Dow Jones Newswires; 248-204-5532, sharon.terlep@dowjones.com