GM stock price dips to 1951 levels

October 9, 2008

General Motors’ stock price dropped today to levels not seen since 1951.  To put this in perspective (as if that is needed), in 1951:

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.]

Photo credit.

« Previous Post | Next Post »

Comments

2 Comments on GM stock price dips to 1951 levels

  1. Lester on Thu, 9th Oct 2008 1:48 pm

    2. 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]

  2. forcechange on Sun, 9th Nov 2008 2:22 pm

    3. 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 commenting below or posting in the forums. No need to agree with the post or other commenters, but please be constructive and respectful.