Scorched-Earth Monday: Bad news for Wall St. is bad news for auto industry



Writing about cars for a living is a beautiful thing. Aside from doing what we love, we're able to keep ourselves somewhat insulated from the bigger issues ailing our world, content to avoid those unsavory subjects like a Klingon-filled elevator at a Star Trek convention. But we can't elude reporting on the current economic crisis any more than we can keep our lunch down while watching our meager savings fall through the floor.

The Dow fell 777.68 points today – almost 7% -- to 10,365.34 after the House voted against the $700 billion bailout of the financial industry. The world's biggest automakers were far from immune. General Motors' stock dropped by 12.81%, going for $8.51 a share, while Honda lost almost 10 percent, Ford and Toyota lost over 8% and Tata dropped some 13%. And that's just the tip of this chilly iceberg. Shares of both auto suppliers and massive retailers dropped accordingly, while oil futures tanked by 10%, selling for $96.37 a barrel.

While it's certain that all the government's men and women are going to put this humpty-dumpty bill back together again and attempt to vote on revised terms by the end of the week, the automakers and those of us playing the home game of "Rebuild Your Failing Economy" are forced to wait idly by while our futures shuffle off this mortally-wounded coil. And what are the chances of Detroit's Big 3 getting their $25 billion? Stay tuned sports fans, the best worst is yet to come.

[Sources: NYT, Google, Automotive News | Image: Nicholas Roberts/Getty]

Reader Comments (Page 1 of 3)








Autoblog Podcast #152: Paukert Enhanced!

Eddie Alterman wades in with Sam, Chris, Dan, and Jonny to talk about SEMA and other recent events.

 
 

Featured Galleries

  • BMW Concept 6
  • Zenvo ST1 Details
  • SEMA 2009: HPP Daytona Challenger
  • LA Design Challenge 2009 Competitors
  • SEMA 2009: 1962 Chevrolet Corvette C1-RS
  • SEMA 2009: Bigfoot
  • SEMA 2009: Black Bison Toyota Alphard
  • Ford's Inflatable Seat Belts
  • 2011 Porsche Boxster Spyder
  • Shelby Turbocharged Mustang
  • Jetta TDI Cup Street Edition
  • SEMA 2009: Ringbrothers 1964 Ford Fairlane

AOL Autos

Find Your Next Car

Autoblog Video


Autoblog Green

Daily Finance

Download Squad

Engadget

Joystiq

Autoblog Spanish

Switched.com

FanHouse

Asylum