GM Shares Plunge To 75-Year Low

(AP)  General Motors Corp. shares on Friday fell to their lowest point in more than 75 years, as investors fretted that despite government help the ailing automaker may still be forced to file for bankruptcy protection.

GM shares hit a low of $1.27 in late morning trading Friday, before rebounding. At the closing bell, GM shares dropped 41 cents, or 22 percent, to $1.45.

The low point matched a record set on May 4, 1933, according to the Center for Research in Security Prices at the University of Chicago. The price is adjusted for splits and other changes.

GM released a statement Friday saying that it had not changed it position on a possible bankruptcy protection filing, and that an out of court restructuring remains its best option.

"As a prudent business measure, the company has analyzed various bankruptcy scenarios," GM said in its statement.

"However, the company firmly believes an in-court restructuring would carry with it tremendous costs and risks, the most significant being a dramatic deterioration of revenue due to lost sales."

Even if the automaker doesn't file for bankruptcy protection, analysts have said that a government bailout of the automaker will also dilute its shares to the point that they are nearly worthless.

Friday's stock drop comes as members of the Obama administration's auto task force continue to meet with GM's stakeholders and weigh their options.

On Thursday, members of the task force met with representatives of General Motors' bondholders, along with the chief executive of Fiat Group SpA whose company wants to form an alliance with GM's fellow ailing automaker Chrysler LLC.

The news came on the same day that Detroit-based GM released its annual report in which its auditors said they had doubts about whether GM can overcome its staggering losses and generate enough cash to stay in business.

GM said in the report that it's on the edge of bankruptcy and won't be able to avoid it unless it gets more government money and successfully executes a huge restructuring plan.

The automaker lost $30.9 billion last year, is living on $13.4 billion in U.S. government loans, and is seeking up to $30 billion as it tries to survive the worst auto sales climate in 27 years.

GM is also hoping to get help from other countries. The automaker's Adam Opel AG subsidiary wants to secure at least $3.8 billion from the German government.

Detroit's automakers have 20 plants in Ohio. The biggest include a Chrysler LLC complex that makes Jeeps in Toledo and a General Motors Corp. factory in Lordstown that produces the Cobalt and Pontiac G5 fuel-efficient cars.

[Numberonenomore]

Remember, it took GM and the UAW to get us to this point.

[otiswestfall]

For God's sake, lets not try to blame CEO Wagoner. None of this could possibly be his fault.

[dls3221]

Why do the big-3 boast that their cars are every bit as good as the Japanese ? Should't they have been the automotive leaders ? Shouldn't they be trying to excel ? Hyundai used to make junk in the mid 80's. Now they're building high quality.

Have we forgotten the Cadillac Cimmeron, a glorified Chevy ? Or how about the GM diesel, simply the 350 gas engine converted to diesel. It was a disaster.

[davidm2902]

OPEN LETTER TO AUTOMAKERS - BUSINESS PLAN OUTLINE & CONSIDERATIONS
Do we all miss this point, should automakers (or any corporation) accept any money, from wherever, in so doing, a fiduciary responsibility is incurred, to return a profit. Is not this, the difference between a business, and a charity?
Armed with this knowledge, it is clear what the auto industry needs, and does not need. Think, the auto industry needs sales, not charity. Is it not true, by giving them money, in essence, the only way they could possibly use that money, to increase car sale, would be, to pay people to buy their cars (a charity-go-round)? Obviously, money is not what they need. Now, here is what the auto industry needs - SALES CONTRACTS.
How much money do the Big Three automakers spend on lobbyist, if it is more than a buck, they are spending 96 cents too much (not worth a nickel), or maybe, they are just hiring the wrongs lobbyist? The lobbyist currently hired, should be those lobbyist, not seeking to secure bailout money, but rather, those, who seek to secure, SALES CONTRACTS.
Here?s an ideal ? Take the money currently being spent on lobbyist, and hire a SALES DEPARTMENT!!!
The people you will be looking to hire, will demand the creation of a new generation of autos, which will be produced at your new, ?Generic Electric Division?, which, will produce, a no-frills, bottom of the line, the most basic of electric vehicles (2 seats, 4 tires, radio, heater and air), a transportation vehicle. A vehicle that can be built at a total cost per vehicle of less than $8,000 and sold for $10,000. Where a 1 billion dollar contract will require 100,000 car produced, and a net profit of $200,000,000
Once in place, let me start you out with a couple of Sales Leads & Selling Points-
1) The Defense Dept., with a $540 billion dollar a year defense budget (not including the cost of two on-going wars), explain their need to convert or replace, all non-combat vehicles to American made and energy efficient ?Generic Electric Vehicles?. Explain to them that this will allow (US auto plants) to re-tool and expand, as a nation we can reduce our dependence upon foreign oil (increasing national security), work in cleaning-up the environment, expand research and funding in the development of green technologies (creating green jobs).
2) The State Dept., while not knowing what that budget is, I understand Hillary will be seeking to increase its funding, explain their need to convert or replace, all government own/leased vehicles to American made and energy efficient ?Generic Electric Vehicles?, explain to them that this will allow (US auto plants) to re-tool and expand, as a nation we can reduce our dependence upon foreign oil (increasing national security), work in cleaning-up the environment, expand research and funding in the development of green technologies (creating green jobs).
3) Local, State, and Federal agencies. Explain that all government owned/leased vehicles, as a matter of national pride, need to be American made and energy efficient ?Generic Electric Vehicles?, explain the need to replace those vehicles which do not reach this requirement, because, this will allow (US auto plants) to re-tool and expand, as a nation we can reduce our dependence upon foreign oil (increasing national security), work in cleaning-up the environment, expand research and funding in the development of green technologies (creating green jobs).
4) Foreign aid. I do not know how much money we give away there, but lets throw in some ?Generic Electric Vehicles? contracts.
*We will call this ?Phase One? First-Generation (GEV) Generic Electric Vehicles ? 2 seat/business class.
Beginning 2012 ? ?Phase Two? Second-Generation (GEV) Generic Electric Vehicles ? 4 seat/family class.
Target Markets:
1). The private sector.
a. Corporate Leasing Contracts.
b. Tree-huggers/Environmentalist
Beginning 2016 ? ?Phase Three? Hovercraft & Jetpacks
Target Markets:
1) Rich People.
Beginning 2020 ? ?Phase Four? Orbiters & Landing Crafts
Target Markets:
1) Very Rich People.

[jaykay3141]

Once we built the best cars
One by one
On the GM assembly line.
Sold them by the millions,
Could have won
If we'd been smart at the time.
But got fat and happy,
Now it's done.
Brother, can you spare a dime?

[v_max224]

-Back in 1987 I bought my one and only brand new vehicle, a Chevy step side pick up truck. I needed a truck for my farm and a "safe" form of transportation as I was expecting my first child. Safe?? You guessed it! It was one of those with that nasty,unwanted option of exploding on impact when hit from the sides.

Posted by Justme1331 at 2:04 PM : Mar 6, 2009

You're god*damned liar. The last year for GM outside the the frame rail fuel tanks was 1985.
Even then the NBC Dateline "expose" had to rig the Chevy truck with explosives to make it "blow up" as everyone claimed.

[lionofcamelot]

I have two words from GM's past that sum up the situation perfectly: Designed Obsolesence

[noloyalisti]

The problem as usual was the Neo Conservative agenda for big business to make conglomerates. We should never have let ANY of these businesses get this big in the first place. That goes for banks, oil companies and insurance companies as well.

[Storm_Rising]

I am so tired of hearing that GM is to big to fail. It has been failing the American consumer for years with sub-standard vehicles. The arrogance of CEO Wagoner
saying their quality is every bit as good as the imports yet year after year none of the US auto makers ever makes Consumer Reports top list of vehicles. It's time for GM to quit wasting tax payers money and file for chapter 11, restructure, and try to make it on their own. And if they don't, the have no one to blame but themselves. And for all those millions of taxpayers that was against an auto bailout, we need to let them know that we will never buy from GM or Chrysler ever again.

[Justme1331]

Back in 1987 I bought my one and only brand new vehicle, a Chevy step side pick up truck. I needed a truck for my farm and a "safe" form of transportation as I was expecting my first child. Safe?? You guessed it! It was one of those with that nasty,unwanted option of exploding on impact when hit from the sides. My reimbursement for that brand new Chevy?? Nothing, not a dime. Left a very nasty taste in my mouth. At one time in my life(before I knew any better) , I favored Chevy, owned a couple real beauties and was loyal to the brand. But where was Chevy's loyalty to their customers safety ? They stuck us with an unsafe vehicle that we could not, IN GOOD CONSCIENCE, sell or trade in. It's the attitude that those of us "masses" don't deserve even safety, let alone luxury, combined with an overall disregard for what the "masses" demand in pricing value and fuel consumption that has driven this company into the ground. Maybe they got it right with the Malibu, but too little too late comes to mind. As for the comments about Toyota and Honda, LMAO!! I'd take either over any GM products, I have experience with both brands and they are top notch!