WDET News
- GM Shares Fall 31 Percent
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Oct 9, 2008Automotive & Business - Link to Audio
General Motors stock lost nearly a third of its value in trading Thursday. Detroit Public Radio’s Jerome Vaughn has more.
SOQ
GM stock dropped to its lowest level since 1950. Shares fell $2.15, closing trading at $4.76. That’s a one-day drop of 31 percent.
Financial analysts say the nation’s economic crisis is hurting General Motors. Tightening credit is making it harder for potential customers to get auto loans. Falling consumer confidence is keeping people out of dealer showrooms.
Earlier in the day, Standard and Poors rating service placed General Motors – and GMAC Financial Services – on “creditwatch negative”. That means the company’s credit rating could soon be downgraded.
The value of GM stock has dropped 89 percent in the past year.