"There are significant costs to bankruptcy, and we don't think it's an option," Wagoner said in an interview with The Associated Press. "Talking about it actually hurts the business."
GM has lost nearly $3 billion in the first nine months of the year and on Monday announced a tentative agreement with the United Auto Workers (search) that will help lower its spending on health care for workers and retirees.
GM, which is the world's biggest automaker, has been suffering from declining U.S. market share, rising costs for materials like steel and a drop in sales of sport utility vehicles, the company's longtime cash cows. It cut production by 20 percent in the first three quarters of this year, hurting profits.
The carmaker also faces huge pension cost issues in the years ahead that some analysts said could push it into a bankruptcy reorganization.
Wagoner also said he planned to cut his compensation by about half and said other top executives would make similar adjustments.