TA的首页GM shares plunge on bankruptcy fears
General Motors (GM, news, msgs) shares slumped below $10 today -- a level not seen since September 1954 -- after an analyst suggested that slumping sales may force the automaker to seek bankruptcy protection.
The plunge is an astonishing moment in the history of the nation's largest automaker -- once so powerful that many people believed that, as the late GM president Charles Wilson was incorrectly quoted as saying in 1953: "What's good for General Motors is good for the country."
GM's slump helped the Dow Jones industrials fall nearly 167 points today and the overall stock market dip into bear-market territory after crude oil hit a new closing high of $143.57, up $2.60 from Tuesday.
Merrill Lynch analyst John Murphy said GM needed to raise up to $15 billion in new capital to get through 2008 and 2009. The company insisted it had enough to cash to get through 2008 and could sell assets and make other moves in 2009.
GM closed down 15.1% to $9.98. Shares of all automakers plus automobile parts makers and tire makers also fell.
Bankruptcy is "not impossible" if the U.S. auto market continues to slump, Murphy wrote. A GM bankruptcy would put all labor contracts at risk and take years to resolve and could cause problems for thousands of suppliers.
The plunge is an astonishing moment in the history of the nation's largest automaker -- once so powerful that many people believed that, as the late GM president Charles Wilson was incorrectly quoted as saying in 1953: "What's good for General Motors is good for the country."
GM's slump helped the Dow Jones industrials fall nearly 167 points today and the overall stock market dip into bear-market territory after crude oil hit a new closing high of $143.57, up $2.60 from Tuesday.
Merrill Lynch analyst John Murphy said GM needed to raise up to $15 billion in new capital to get through 2008 and 2009. The company insisted it had enough to cash to get through 2008 and could sell assets and make other moves in 2009.
GM closed down 15.1% to $9.98. Shares of all automakers plus automobile parts makers and tire makers also fell.
Bankruptcy is "not impossible" if the U.S. auto market continues to slump, Murphy wrote. A GM bankruptcy would put all labor contracts at risk and take years to resolve and could cause problems for thousands of suppliers.
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