GM Shares Fall to Lowest Since 1950; S&P May Cut Debt Rating

[gopbuster]

Source: Bloomberg

GM Shares Fall to Lowest Since 1950; S&P May Cut Debt Rating

By Bill Koenig and Jeff Green

Oct. 9 (Bloomberg) -- General Motors Corp. tumbled to its lowest in New York trading in 58 years and Ford Motor Co. fell to almost a 26-year low as the U.S. auto-sales outlook worsened and Standard & Poor's said it may cut their debt deeper into junk.

Market researcher J.D. Power & Associates today estimated that car and light-truck sales will fall to 13.6 million this year and 13.2 million in 2009. The total was 16.1 million last year and hasn't been as low as the 2009 projection since 1992.

``Buyers are both voluntarily and involuntarily exiting the U.S. new-vehicle market,'' Jeff Schuster, executive director of automotive forecasting for Westlake Village, California-based J.D. Power, said in a statement. ``The global market in 2009 may experience an outright collapse.''

U.S. auto sales tumbled 27 percent in September, the biggest monthly drop since 1991, as the credit crisis reduced access to loans for potential buyers. The industry already had been hurt by gasoline prices that reached a record high in July and by the housing slump that weakened consumer confidence.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=alkANvL.Q_Io&refer=home

[Bushies gotta go]

1. Um. Let me guess this one. More bailouts? n/t

[Purveyor]

2. I wonder how much of GM stock was bought on margin and if the 'margin calls' have started yet. eom

[Winterblues]

3. the biggest monthly drop since 1991,

Who was President then, oh that's right Bush...Them Bush's sure know how to do it up "Big Time"

[sarcasmo]

4. Kill the EV1 and build the Hummer, and go bankrupt, a great business model.

[zeemike]

5. Exactly the problem

Had they put the EV into production they would be in the cat bird seat right now.