• Oct 9, 2008
General Motors and Ford just concluded an absolutely brutal business day on Wall Street, which echoed the performance of the markets in general as the Dow Jones Industrial Average slid another 678.91 points to close below 9,000 at 8,579.19 points. GM closed the day at 4.94 after having dipped as low as 4.72 just minutes before the bell rang at 4PM, while Ford ended today at just 2.14. Analysts are noting that GM shares haven't been this cheap since the 1950s and that a single share of Ford stock costs less than a gallon of gas at the moment. We are most certainly not financial analysts, but we do know these companies are heading in the wrong direction fast and that a brighter future is not weeks but months and years away.

[Source: AOL Money and Finance]


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    • 1 Second Ago
  • 66 Comments
      • 6 Years Ago
      Tagg, it is over. Look at the cash burn of each company. They cannot survive and all that government loan does is throw money into an inferno. It will make virtually no difference.

      The business and management structure of each company is fundamentally flawed to the point that they cannot make money. Period. End of story. They are insolvent businesses who cannot survive as-is anymore.

      Both companies will go bankrupt. There is no way around it.
        • 6 Years Ago
        What about the other but slim chances to happen of a takeover? We knew then 2 years ago, Ghosn of RN had an eye on GM when "Captain Kirk" Kerkorian was on GM board. Now Ghosn try to dance with Chrysler but who knows if he could be tempted to have another partner....
        • 6 Years Ago
        You are truly delusional - grow up and see what the true market value of these corporations are based upon assets, not based upon what the lemmings on Wall Street think - they are likely to all jump off a cliff if one of them does - not a clue!

        The whole global finance community is insane and doesn't know their a## from a hole in the ground.

        What do we do - do we bid up oil, or bid it down? And on and on and on...
      • 6 Years Ago
      That's what happened when you use union labor. No matter what the industry.
      • 6 Years Ago
      I love what AB does with the logos.
      • 6 Years Ago
      Idiots voted for deregulator Republican crook George Bush/Dick Cheney not once but twice, and now a significant part of the population is considering voting for deregulator McCain. Are Americans looking for suicide? The legacy of the 'leadership' of the last 8 years is a debt of $10 trillion mainly owed to China, Saudi Arabia, Russia, a shattered world economy....a pointless war...and people still don't get it?

      Good luck to the big 3, it would be a shame to see them go under.
        • 6 Years Ago
        "I'm Barack Obama, and I approved this message."

        "Excuse me Senator, Mr. Raines is on the phone"

        "Who?"

        "Frankin Raines, the guy who ran Fannie Mae into the ground and gave lots of lobbying money to you, Chris Dodd, and Barney Frank to block the Rebublicans efforts to reform it. The Franklin Raines who is now one of your top economic advisors on the campaign and will probably be in your cabinet when you are elected president."

        "Oh, THAT Mr. Raines, I thought you were talking about a guy that happens to live in my neighborhood that did terrible things when I was 8 years old. But I never REALLY knew him you see. I take his call right away."
      • 6 Years Ago
      Hee Hee. About to go broke eh?

      Hey, GM: Remember that warranty claim that I was 100% in the right and you (1-800 GM) fought with me for 4 months and denied?

      Well, I never forgot. I'll never own another one of your pieces of garbage again.

      Payback's a bitch, ain't it? Suffer, you son-of-a-bitches

      Karma is a wonderful thing.
      • 6 Years Ago
      It's pretty clear that these two are being way undervalued, this is a bargain price to be picking up either of their stock. There is just no way both of them are worth so little. I know I'll be buying up some of their stock right away! As Warren Buffet said " America is on sale right now".
        • 6 Years Ago
        Well, the trouble with buying these stocks at their "amazing fire sale prices" is that if the government -does- take them over it heralds a complete loss of shareholder value.

        So yeah, Ford/GM might get bailed out and saved, and all the money you put into them is wiped out.

        Don't worry though comrad, it's better for everyone this way, now get back to your field and grow some damn potatoes!
      • 6 Years Ago
      Maybe GM and Ford will actually start building all those fabulous concepts (which they never make it to production) that everyone loves and promises to purchase.
        • 6 Years Ago
        No one will ever purchase a car not built.
      • 6 Years Ago
      You people are all a bunch of tools. Its like most of you WANT GM and Ford to fail just so you can say "I told you so". A$$wipes.
      • 6 Years Ago
      Please correct me if you think I'm crazy ... but I don't think the government is going to bailout (free money) GM/Ford but my guess is that they will loan them enough money to get through this rough patch. Does anyone really think the government is going to 1) standby while these companies go under. Also, they have some pretty good existing and future cars as well.
        • 6 Years Ago
        Of course, they could pull a WaMu and decide to take over GM and sell it off - but then again, the only automaker in good enough health to buy it would be Toyota...
      • 6 Years Ago
      Time to buy some GM and Ford stock...
      Otherwise this blog will become "HotWheelsblog.com"
        • 6 Years Ago
        America will always make cars but they might not always have private companies. The auto companies need to get smaller leaner and new management and slash costs.
      • 6 Years Ago
      Might be the time to get away from being public. For such companies, it's not relevant to have shareholders sucking down all the cash from R&D investment. Long term strategy does not match properly with fast-paced market reactions.
      • 6 Years Ago
      All I have to say is buy a TON of new Camaros!
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