General Motors In a Ditch

GM shares plunged to their lowest price since 1949 before recovering slightly, reports the Washington Post. Analysts are concerned that the global auto industry is on the verge of “outright collapse.” Standard & Poor said on Thursday that it is considering cutting the rating of both GM and Ford to “junk” status, which would sharply increase their cost of borrowing.

Both domestic and imported car sales have been plummeting in the wake of the financial market meltdown.

According to a company statement

“Clearly we face unprecedented challenges related to uncertainty in the financial markets globally and weakening economic fundamentals in many key markets,” GM said in a statement on Friday.

“But bankruptcy protection is not an option GM is considering,” it said. “Bankruptcy would not be in the interests of our employees, stockholders, suppliers or customers.”

Somehow this doesn’t inspire a lot of confidence.

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