Executive sales prompt plunge in share price
13 May 2009

General Motors stock plunged to a 76-year low following the decision of six executives to sell their holdings in the company.

Six GM executives, led by former GM vice chairman and product chief Bob Lutz, disclosed on Monday that they sold almost $315,000 (£206,000) in stock and liquidated their remaining direct holdings.

GM executives sell their shares

GM has less than three weeks remaining to slash debt and operating costs with the UAW workers' union and bondholders to avoid bankruptcy.

The executives' decision to sell the shares suggests that even they do not believe it is possible. If GM files for bankruptcy protection or undergoes an out-of-court restructuring its shares would be almost worthless.

GM's shares fell as low as $1.09 (71p) yesterday, the lowest since 1933, and ended the day 19.4 per cent down at $1.16 (76p).

GM has lost $88 billion (£57.6 billion) since 2004, including a $6 billion (£3.9 billion) lost for the first quarter of this year.

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