GM Shares Near 60-Year Low as European Sales Drop

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.

Link

GM Tanks 21% and this is a relatively good day for the market, less than 100 points down. Ford shares are trading around $2.40

We are not in a recession. The fundamentals of our economy are sound. The check's in the mail.

'Death Watch'

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.

We do business with both Ford and GM . . . at least for now. It looks bleak. GM is 'resourcing' to the lowest bidder (foreign or national, good quality or bad . . . they don't care) and we're watching business fly out the door overseas daily.

We were notified earlier this month that another 14 jobs are headed abroad which means about 16 more people are on their last days at this plant.

It is very very nasty.

GM is trading at about $5.75, down almost $40 in a year.

Ford stock is going for about the price of a coffee and donut.

Wow! Some of the basic American corporations are tanking.

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.

GM and Ford Drive Off Wall Street Cliff

GM is down more than two bucks again this morning and Ford continues to tank.

They're gonna go belly.

sarcasm on....

So bush today released a statement saying 900 billion bailout for the auto industry.. should be in congress sometime next week.. news still to come...

/sarcasm

So anyway how about that sexy looking huffy at the store today.. seems good.. maybe a honda..

[edit on 10/10/2008 by ThichHeaded]

Ford and GM are actually trading up today, but at one point just after the open you could buy GM for $4 and Ford for $2. In other words, you could either fill the tank on your Ford Excursion or buy 50 shares in the company...

The auto industry at large is hurting. Regardless of foreign or domestic model vehicles, there is a huge majority of both manufactured right here in the US. Even the Japanese "imports" are hardly imports anymore, since they are completely manufactured for the US by the US.
Anyway, while they are not yet seeing the dramatic declines of the old boys in the north, they are being hit. I work for one in the south and I get to see first hand how slow the auto market is based on how vehicles stack up in inventory. Now, with the credit crisis full entrenched, vehicles that were once hot sellers are slowing to the point of stagnation.
Normally by now, auto manufacturers would normally ramp up production for the holiday buying spree, but I am seeing slow downs in production based on dismal futurecasts for this last quarter. It will be interesting to see how many tank and how many survive. I would not put a lot of hope in the foreign manufacturers that employ thousands and thousands of skilled and general labor individuals to keep the lights on if they are facing a bust with no recovery.

[edit on 10-10-2008 by wheresthetruth]

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.

Link to full story from Reuters

Sounds suspiciously to me like the coach of a football team getting a 'vote of confidence' from the owner on Friday.

Come Monday, they're usually job hunting.

A part of me really wants to pick up a 100 or so shares for both ford and GM. However I just dont have a good feeling in my gut that we have hit bottom, and that they will make it once we hit bottom. It is so tempting though.

reply to post by dlongwell547


Trust your gut feeling. They may make it through but I doubt if their shares will be worth much more than todays price for a while to come.