With gas prices punishingly steep and with more and more people drawn towards more economical cars, GM and Ford Motor Co. continue to take major hits as their stock prices tumble.
GM shares closed at $9.98: the lowest value in more than 50 years. On the other hand, Ford Motor Co. shares closed at $4.39.
It is a dark time for the auto industry in general and the recent economic recession of the country has been a major factor. Right now, people's minds are focused more on necessities as well as finding all means possible to economize.
Light trucks and SUVs do not fit the economical category. The problem facing GM and Ford is that large vehicles have always been a staple in their production line-up. In the case of Ford, the F-150 Pickup truck has been its best selling vehicle for so many decades now. The sudden drop in demand for these types of vehicles is detrimental indeed.
According to a Merril Lynch analyst, bankruptcy isn't an impossibility even for the largest auto maker especially if the U.S. auto market continues its slumping trend.
No comments:
Post a Comment