GM Shares Hit 27 Year Low

by Darren

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GM and Ford shares took a hit today, with GM shares reduced to a new 27 year low. The reason is obvious. The North American auto market is the world’s largest and is in the throes of an off year. Japanese auto makers have already reduced estimates for 2008, and so have GM and Ford.

GM and Ford last lived fat in the early part of the decade, when consumers (who were lucky to have such low gas prices) starting eating up gas-guzzling models that the companies made huge profits on. Now, consumers are faced with tight credit and record high gas prices. Of course they’re opting to buy smaller cars, and many less of them.

Shares hit intraday prices of $16.87, a low that hasn’t been achieved since 1981. Ford fared slightly better, but is down over 3% today.

Until gas prices lessen rapidly, the outlook for GM for 2008 is not rosy.

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