General Motors' share price collapsed to its lowest level in 50 years
4 July 2008

Shares in General Motors collapsed this week to their lowest level in 50 years when a leading bank said the car giant could become bankrupt.John Murphy, a leading analyst at Merrill Lynch, said: "Bankruptcy is not impossible if the market continues to deteriorate and significant incremental capital is not raised."The share price closed at $9.98 on Wednesday, compared with a high of $93.60 in April 2000.A GM spokesperson said: "We continue to believe the company has sufficient liquidity for 2008 despite lower volumes," although city analysts believe the company may need to raise as much as $7.5bn during the ongoing credit crunch to see out the current downturn in car sales.In America, large companies can continue to trade under the protection of Chapter 11 bankruptcy. Several airlines are currently under Chapter 11 protection, and Boeing has been in the past. GM was reported to have come very close to entering Chapter 11 bankruptcy in 2005.

Our Verdict

Vauxhall VRX8 2011-2012

The Vauxhall VXR8 is an unsophisticated sledgehammer that is engaging, entertaining and very different from the German super-coupés that it rivals

Join the debate

Comments
1

4 July 2008

Isn't there a 't' in bankruptcy?

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Lexus LC500
    Car review
    20 October 2017
    Futuristic Lexus LC coupé mixes the latest technology with an old-school atmospheric V8
  • Maserati Levante S GranSport
    First Drive
    20 October 2017
    Get ready to trade in your diesels: Maserati’s luxury SUV finally gets the engine it’s always needed
  • Jaguar XF Sportbrake TDV6
    First Drive
    19 October 2017
    The handsome Jaguar XF Sportbrake exhibits all the hallmarks that makes the saloon great, and with the silky smooth diesel V6 makes it a compelling choice
  • Volkswagen T-Roc TDI
    First Drive
    19 October 2017
    Volkswagen's new compact crossover has the looks, the engineering and the build quality to be a resounding success, but not with this diesel engine
  • BMW M550i
    First Drive
    19 October 2017
    The all-paw M550i is a fast, effortless mile-muncher, but there's a reason why it won't be sold in the UK