Monday, June 25th, GM’s stock dropped 3.4 % to $19.91, the first time since December 2011 the company’s stock closed below $20.
Growing concerns about Europe‘s economy and the losses automakers face there, made auto stocks sink on Monday. GM was down 69 cents a share. Dan Akerson, GM CEO, declared earlier this month at the company’s annual meeting, that GM’s stock price is dragged down by the growing concerns about Europe’s uncertain economy.
“There is a lot of uncertainty generally about the strength of a major trading partner,” Akerson said.
Another company that saw its stock fell was Ford down 1.8% to $10.01, down 18 cents, hitting an intraday low of $9.95. In November Ford closed below $10 a share.
As bad news don’t come alone, GM’s low stock price made the Treasury Department stop selling the remaining 26.5% stake as part of its $49.5 billion bailout. The current present trading prices, would make the Treasury lose $16.5 billion on its GM bailout. Mitt Romney, the Republican presidential candidate, said earlier this month that the government will quickly sell the remaining 500 million shares of GM stock, no matter how big the losses to taxpayers would be.