• Mar 6th 2009 at 4:26PM
  • 24
With both evidence and speculation mounting that General Motors and Tier-1 supplier Visteon Corp. have bleak futures, both companies' stock shares continue to get hammered, with GM's shares trading as low as $1.40 Friday morning and Visteon dropping from 7 cents to 2 cents on Thursday. For GM, that's its lowest price since May 23, 1933, and the price for Visteon is so low that the New York Stock Exchange delisted it – its last day on the exchange was yesterday.

Investors are dumping their shares as both companies look increasingly like bankruptcy is in their futures unless additional government support can be secured – in fact, Visteon's declaration all but a lock. The supplier is widely expected to default on a $15+ million interest payment soon, a move that would trigger bankruptcy.

[Sources: Detroit News; Detroit Free Press | Image: Spencer Platt/Getty]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
      • 6 Years Ago
      GM needs to restructure. Sure it's going to hurt i the short term but they'll be a much stronger long term.

      GM has been close to the edge for a while and now that we have a perfect storm of economic conditions they're ready to capsize.

      Too bad nobody kicked GM's leadership in the nuts long ago to get their attention but I'm sure they're listening now.
        • 6 Years Ago
        I don't think they get it. Wagner and his friends in upper management, the top five (5) levels are still paid the big, big bucks; millions in salary, bonus, options & perks. Its the old buddy system, scratch my back & I'll scratch yours.
      • 6 Years Ago
      Should I buy a McFlurry, or a Share of GM?
        • 6 Years Ago
        BUY GM!!!
        • 6 Years Ago
        Or a Big Mac....
        • 6 Years Ago
        hold off till next week.
        you'll be able to get 3 shares for that price ;)
      • 6 Years Ago
      This is certainly the most crucial period the American auto industry has ever seen. It's not so much GM going bankrupt as it is the timing of them going bankrupt. I believe that this economic crisis is going to get much worse before it gets any better, and therefore, GM going bankrupt now is not a good time to do so because even the government likely will not be inclined to bail them out again.

      It will be a sad day for the industry, but a wake up call for everyone. This financial mess is serious and a lot of people are going to get burned.
      • 6 Years Ago
      Yo autoblog, maybe you could set yourself apart from the rest of the media and stop reporting such NEGATIVE news. You guys are only make things worse. I come to autoblog to read about cars, not all the problems going on in the industry. I can tune into the major news networks for all that BS.
        • 6 Years Ago
        Yeah, Heaven forbid you learn anything...
        • 6 Years Ago
        it's automotive news...

        I mean, duh. I like to keep track of it, if you just pissed this is happening then you might just have to deal with it. sorry.

        *hugs* *punch in the face*
        • 6 Years Ago
        Share price dropping is a fact.

        Autoblog is a news site.

        Hence, the fact is reported at the site.

        End of news.

        Comments and opinions follow.

        End of story.

        GM share prices started a sharp downfall following yesterday's GM report on what its auditors think about financial situation company.
        • 6 Years Ago
        How can you have a blog about cars and NOT report on the companies that make them? Knowing about the companies give great insight into the products themselves.

        Bad news is still news.
        • 6 Years Ago
        Maybe you should close your eyes and cry in a corner if you can't take bad news. Bad news is news . . . if you shorted GM's stock a year ago, this is actually good news for you.
        • 6 Years Ago
        Hear! Hear!
      • 6 Years Ago
      • 6 Years Ago
      Two (2) Cents and actually it went up to nearly 4 cents today, according to the company, they are not going to claim bankruptcy.
        • 6 Years Ago
        "The drop comes as members of the Obama administration's auto task force continue to meet with the automaker's stakeholders and weigh their options."

        Read as: Much like baby birds, Obama's auto task force sits with their mouths open waiting for their mama Ron Middelfinger to regurgitate his demands into their mouths.
      • 6 Years Ago
      Fisher Body Plant 21 at Piquette and Hastings? Those were the days!
      • 6 Years Ago
      Toyota has a lot to talk about with the Presidential Task Force on Autos, and the Visteon news ought to be pushing the topic of domestic parts suppliers to the forefront (though I wouldn't bet on it). Toyota and Honda in particular are tied to many of the same suppliers as Detroit, and if the suppliers start falling almost everyone is in trouble.

      As for Toyota's $2 billion, from a finance perspective why would you loan out your own money when you can loan out someone else's money and get virtually the same benefit?
      • 6 Years Ago
      Unless GM gets a new CEO and new EVERYONE in the top levels, history will repeat itself - they will continue to make the same mistakes over and over again then that time around the company will be forced to close forever - no bailouts no bankruptcies!
      • 6 Years Ago
      A GM bankruptcy might be good for Ford - in the medium to long term, as those who want to buy "American" would have one choice.

      Of course, bankruptcy doesn't mean they'd go out of business, but if they liquidated some assets (factories), it might be ripe for some other company to pick them up (Hyundai or a Chinese maker). It'd be interesting to watch it all unfold.
        • 6 Years Ago
        Agree but it needs to be an orderly process done over the next two years to limit the impact on the economy.
        Really GM needs to go through a 12 step process. First GM needs to admit it has a problem.
        "My name is General Motors and I am insolvent..."
        • 6 Years Ago
        You are correct. GM could file bankruptcy tomorrow and they will still keep building cars. For the numskulls here who are cheering for bankruptcy and for them to go under, sorry to burst your bubble. They are still going to be around for a long time.
        • 6 Years Ago
        "A GM bankruptcy might be good for Ford - in the medium to long term, as those who want to buy "American" would have one choice.

        Of course, bankruptcy doesn't mean they'd go out of business, but if they liquidated some assets (factories), it might be ripe for some other company to pick them up (Hyundai or a Chinese maker). It'd be interesting to watch it all unfold."

        Liquidate their factories to who? Another automaker that is currently at overcapacity in this recession? In Michigan there are already as many empty factories as you could possibly want.

        As for the Chinese, why would their give up their wage advantage?

        The only way for a GM to survive a bankruptcy is for the US Government to become its sugar daddy financier. If that's ok with you, then fine. But if you don't want that to happen, then don't sell the idea they will survive a bankruptcy either.
    • Load More Comments
    Share This Photo X