By Whitney Kisling
Dec. 12 (Bloomberg) -- U.S. stocks, the dollar and oil fell after the Senate’s rejection of a bailout for American automakers threatened to deepen the worldwide recession.
General Motors Corp., the biggest U.S. carmaker, lost 3.6 percent and Ford Motor Co. slid 4.5 percent, while Exxon Mobil Corp. and Chevron Corp. dropped as oil declined the most in almost two weeks. Honda Motor Co. and Daimler AG sank more than 4 percent as the failure of the rescue plan sent stocks falling from Tokyo to Frankfurt. Auto shares pared some of their losses after the Treasury said it may bolster carmakers with money from a fund intended to shore up U.S. banks.
General Motors Corp., the biggest U.S. carmaker, lost 3.6 percent and Ford Motor Co. slid 4.5 percent, while Exxon Mobil Corp. and Chevron Corp. dropped as oil declined the most in almost two weeks. Honda Motor Co. and Daimler AG sank more than 4 percent as the failure of the rescue plan sent stocks falling from Tokyo to Frankfurt. Auto shares pared some of their losses after the Treasury said it may bolster carmakers with money from a fund intended to shore up U.S. banks.
2 comments:
GM stock is going down. I believe this could be due to lack of confidence in the management. I mean, what CEO of a multibillion dollar corp. goes in front of the senate to ask for money without a plan to fix the company. The lack of direction gives the consumer less confidence in the management as well as GM's terrible balance sheet and excessive debt.
I think these companies need to focus more on innovation and creating smaller more fuel efficient cars. Consumers are going to fear that oil prices are going to reach the highs again they did this summer, they are no longer demanding pricey SUV's. I agree these companies need a plan in order to get money, the senate isnt going to just throw money at them and hope for the best.
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