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GM Shares Near 60-Year Low as European Sales Drop
General Motors' shares hit their lowest level in almost 60 years as the U.S. automaker said its year-to-date sales in Europe slid almost 2 percent.
GM stock traded at an intraday low Thursday of $5.41, marking a decline of 21.7 percent from yesterday's close. GM hasn't traded below $5.50 since December 1950.
The stock selloff effectively puts these companies on death watch and it is easy to see why. A new report by Global Insight, the economic forecasting and consulting firm based outside Boston, shows U.S. auto sales hitting recession levels this year - and then sinking lower in 2009.
Prices of General Motors Corp. and Ford Motor Co. stock took a big dive Thursday as the Dow Jones Industrial Average fell 678.91 points. GM's stock price plunged $2.26, or 30 percent, to close at $4.65. That's the lowest price for GM stock since March 1950. Ford's stock dropped 53 cents a share to close at just $2.14 a share. Analysts attributed the declines to an announcement by Standard & Poor's that the ratings agency was considering downgrading the companies.
In a bid to calm jittery investors General Motors Corp said bankruptcy was not an option as it grapples with "unprecedented challenges" spawned by uncertainty in the financial markets.