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]