GM stock price dips to 1951 levels
General Motors’ stock price dropped today to levels not seen since 1951. To put this in perspective (as if that is needed), in 1951:
- The Dow was at 269 points,
- A typical car sold for around $3,000,
- Gas was 20 cents per gallon,
- And one could buy a home for $16,000.
GM’s suffering is being attributed to the struggling economy, lack of available credit, high gas prices, and high raw material costs. But more importantly, they have failed to produce cars that are desired by today’s consumer.
Maybe it’s not surprising that a company that still builds cars for the 1950’s has a stock price from that era.
[Update: GM's market capitalization is at a level not seen since 1929. Although this is a reflection on our economy in general, it is more of a reflection on GM. It is possible that if they had spent less time over the last 20 years working to lobby for and take advantage of regulation loopholes and subsidies, and more time on developing a modern product line, they might be in a better situation right now.]
- Similar Posts:
- SUVs on deathbed: GM cancels $2 billion overhaul of SUV line
- Gasoline and Oil Up, Future Price Direction is Murky
- From Around the Web
Comments
2 Comments on GM stock price dips to 1951 levels
-
Lester on
Thu, 9th Oct 2008 1:48 pm
-
forcechange on
Sun, 9th Nov 2008 2:22 pm
Yeah that and the fact that they are paying a bloody fortune in health and retirement costs for not only their current workforce but all their retirees.
[Reply]
What if instead of giving GM the billions they are asking for, we let them sink or swim on their own. Then we take that money and devote all of it to job training for anyone who loses their job as a result of a potential bankruptcy. Win-win– no corporate welfare/ moral hazard, and workers who might lose their jobs are helped to transition into a new job.
[Reply]
Please contribute to the discussion by leaving a comment below. No need to agree with the post or other commenters, but please be constructive and respectful.
