GM Stock Lowest Since 1933
March 6, 2009 by Stephen Kersey
Filed under Business
On Friday, General Motors stock reached a low of $1.27. According to University of Chicago research, GM stock hasn’t been that low since 1933. By the end of the trading day, GM had recovered slightly to finish the week at $1.45.
General Motors - Source: Flickr
The bounce back could very well be temporary because of fear that GM could file for bankruptcy in the coming months. Despite receiving nearly $15 billion for the United States federal government, the Detroit based company continues to lose money at an alarming rate. In 2008, GM reportedly lost more than $30 billion.
Although the company says that there is no impending bankruptcy plan of action, they are asking the federal government to help out without another $30 billion bailout. As of now, there’s been no agreement made on a second round of emergency funding. In the meantime, General Motors is attempting to restructure their business model and also work with creditors to help find a way to stop the bleeding.
The main reason why GM is in so much trouble can be linked to the fact that most Americans are lacking disposable income and aren’t shopping for new cars. Instead, older and cheaper cars are become more prevalent on the country’s roadways.
Source: Wire Reports
