GM stock hits 13 year low

Newswheel staff :: 14 November 2005 :: Filed under GM, Europe & UK, US

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Wall Street vultures predict GM bankruptcy

The will it, won’t it saga of GM’s slide towards bankruptcy rolls on. This week’s installment includes a 13-year low for the company’s share price and its lowest sales since 1992. Oh, happy days!

But that’s only the beginning. It also transpired on Wednesday last week that GM had overstated earnings for 2001 by as much as $400 million, an oversight that could leave the company’s top brass deep in the dog doo. What’s more, the Fitch credit rating agency lowered GM’s debt even deeper into “junk” territory, making it much more expensive for GM to borrow money. Then, of course, there are the problems at Delphi. It’s GM’s largest parts supplier, it’s already bankrupt and under administration and it’s possible that the harsh wage and benefit cuts that have just been handed to Delphi’s workers will lead to all-out strikes. God help GM’s superstar chairman and CEO, Rick Wagoner, if that happens.

Linkage:
Detroit News