Photo: nypics.com
Monday marked a 3.4% drop in GM stocks, as they fell below the $20 mark, for the first time since December 2011. Apparently, the unstable European economy drove share prices down by 69 cents, to Monday’s value of $19.91 (€15.93), as Dan Akerson, CEO of GM stated earlier this month “There is a lot of uncertainty generally about the strength of a major trading partner (Europe).”
However, to make GM’s situation even worse, the Treasury Department have stopped selling their remaining 26.5% in shares, which represented part of a $49.5 (€39.5) billion bailout. Due to the reduced share prices, the Treasury Department will lose an estimated $16.5 (€13.2) billion. Also, according to Mitt Romney, the US government will try to sell its remaining $500 (€399) million-worth of shares as soon as possible and with a complete disregard to the losses it could bring about - GM shares are definitely not ‘hot’ right now.
It seems that the ‘Euro situation’ has also affected another US automaker with a lot to lose on ‘The Old Continent’, as Ford also posted a Monday reduction in the value of its stocks, by 1.8%, down to $10.01 (€8.06) per share, despite things starting to look up, as they have just recently commenced B-Max production at Ford’s Romanian plant. It seems that the uncertainty will persist and automakers will still not recover any time soon, in the near future.
It seems that the ‘Euro situation’ has also affected another US automaker with a lot to lose on ‘The Old Continent’, as Ford also posted a Monday reduction in the value of its stocks, by 1.8%, down to $10.01 (€8.06) per share, despite things starting to look up, as they have just recently commenced B-Max production at Ford’s Romanian plant. It seems that the uncertainty will persist and automakers will still not recover any time soon, in the near future.
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