Taking Stock: GM shares hit 75-year low, Visteon delisted after trading at 2 cents
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]
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Reader Comments (Page 1 of 2)
RWD fan 4:30PM (3/06/2009)
Is that actually two hundredths of a cent, or did you mean to write 2 cents?
Can you show the math?
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Hugh G 4:34PM (3/06/2009)
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.
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the vegas style guy 4:36PM (3/06/2009)
Hear! Hear!
n0ne 4:42PM (3/06/2009)
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*
gbernardi 4:42PM (3/06/2009)
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.
Kitko 4:48PM (3/06/2009)
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.
Coolio 5:02PM (3/06/2009)
Yeah, Heaven forbid you learn anything...
Sektor 5:02PM (3/06/2009)
I think I haven't seen any good news about GM ever since the Carpocalypse started.
Miyoshi 5:56PM (3/06/2009)
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.
Taglane 4:34PM (3/06/2009)
Should I buy a McFlurry, or a Share of GM?
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2007RC46SP2 8:49PM (3/06/2009)
hold off till next week.
you'll be able to get 3 shares for that price ;)
Taglane 8:56PM (3/06/2009)
Or a Big Mac....
bakka 10:07AM (3/07/2009)
BUY GM!!!
Luis 4:36PM (3/06/2009)
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.
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Tim 5:07PM (3/06/2009)
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..."
John 5:37PM (3/06/2009)
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.
jpm100 5:59PM (3/06/2009)
"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.
Jeff 4:38PM (3/06/2009)
.02 Cents or .02 Cents?
http://www.collegehumor.com/video:1899970
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Richard Warren 5:55PM (3/06/2009)
Two (2) Cents and actually it went up to nearly 4 cents today, according to the company, they are not going to claim bankruptcy.
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BigWill 6:43PM (3/06/2009)
"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.