With shares of General Motors Corp. sinking, will GM cut their performance market? On Wednesday GM stock closed below $10 for the first time in more than half a century and they have allready cut the productions of their Trucks/SUVs.
DetNews Reports that GM shares fell $1.77, or 15.1 percent, to close at $9.98. Their session low of $9.96 marked their lowest point since Sept. 13, 1954, when they hit $9.92, according to the Center for Research in Security Prices at the University of Chicago.
"While we do not believe GM is facing an immediate cash crunch, the urgency to shore up liquidity to navigate through a difficult 2008-09 has risen significantly in recent months," Michaeli said in a note to clients. He kept a "Hold" rating.
On Tuesday, GM shares surged as much as 12 percent. The automaker reported an 18.2 percent drop in sales from a year ago but retained its traditional U.S. sales lead over Toyota Motor Corp., which posted a 21.4 percent decline.
June was a grim month for the industry hurt by rising oil prices and a weak U.S. economy, along with a shift in consumer demand away from gas guzzling light trucks and toward smaller, more fuel-efficient cars and crossovers. Only Honda, whose lineup is tilted toward smaller and more fuel-efficient cars, managed to report a sales increase for June of slightly over 1 percent.
The only thing we can do is wait. Maybe now with the trucks out of the way and Hummer out the door we will be seeing more of GM performance than ever. I sure hope so.
Source: DetNews
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