GM shares tumble on worries about future
Wednesday August 6, 3:28 pm ET
General Motors shares drop as investors continue to digest steep 2nd-quarter loss
NEW YORK (AP) -- Shares of General Motors Corp. tumbled Wednesday as investors continued to fret about the automaker's future just days after its posted one of its worst quarterly losses ever.
In afternoon trading, GM shares fell 49 cents, or 4.6 percent, to $10.20, after dropping as low as $10.06 earlier in the day.
The drop erased most of the gains posted the previous day when the automaker, along with the overall market, rallied on a steep drop in oil prices. On Tuesday, GM shares closed up 59 cents, or 5.8 percent, to $10.69, after climbing to $10.75 earlier in the session.
Those had marked the automaker's first gains since its Friday announcement that it posted a $15.5 billion second-quarter loss, blaming lower demand for its vehicles and costs related to its restructuring program and labor issues.
GM's shares have taken a beating over the past year, as it has worked to restructure itself in the face of declining U.S. demand and a shift in consumer preferences away from trucks and sport utility vehicles.
The automaker's shares have lost nearly two-thirds of their value since the start of the year and have declined more than 75 percent from a 52-week high of $43.20 in October.
GM shares reached a low of $8.81 on July 15 after the automaker announced plans to shed thousands of jobs and suspend its dividend. That marked GM's lowest price since June 23, 1954.
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