GM’s Stock Hits Record Low, Again
Ever since General Motor’s stock price dipped below $10 per share at the beginning of this month, it has been setting records for all-time low in 50 years. Today was no exception, where it reached at one time $8.81 per share. The stock rebounded during the day, but that still doesn’t ease the employee’s and investor’s fears about GM’s future, including possible bankruptcy.
In today’s news conference, Chairman and CEO Rick Wagoner insists that General Motors had foreseen some of these economic problems, and the company has enough liquidity to keep going in 2008. As far as the immediate future, GM is looking to get $15 billion in cash on hand by 2009. Of this, around $6 billion will come from the sale of assets and external financing. The rest is expected to be raised internally by cutting employees, pay, and dividends.