General Motors Corp. shares on Thursday plunged to their lowest level since the opening months of the Korean War, as investors continued to fret that the decline in U.S. vehicle sales may be spreading to the rest of the world.
GM shares plummeted by as much as $1.50, or 22 percent, to $5.41 before rebounding to $5.90 in afternoon trading. The low point marked the Detroit-based automaker's lowest share price since Dec. 16, 1950, when it hit $5.40, according to the Center for Research in Security Prices at the University of Chicago.
GM is one of the 30 stocks that make up the Dow Jones industrials, and its steep plunge helped pull the Dow Jones industrial average into negative territory, as it looked to recover from a massive sell-off earlier in the week. The Dow fell about 100 points Thursday after losing 1,593 points in the prior six sessions, its worst losing streak since August 2007.
Thursday marked the GM's fourth-straight day of losses. The automaker's shares are down about 35 percent from Friday's closing price of $9.
Analysts have voiced concerns in recent days that the ongoing slump in U.S. vehicle sales could last longer than they previously expected and could spread to other parts of the world, particularly Europe.
J.D. Power and Associates said Thursday that it now expects U.S. new vehicle sales to total 13.6 million units this year and 13.2 million in 2009.
The company had previously projected 2008 sales of 14.2 million units and 2009 sales of 14 million units. Last year, U.S. sales totaled 16.1 million units.
The company also forecast a slow down in vehicle sales growth in both China and India, along with a drop in European vehicle sales.
Ford Motor Co. shares also took a big hit Thursday but managed to stay above a more-than-24-year low set the day before.
The Dearborn, Mich.-based automaker's shares fell 28 cents, or 10.5 percent, to $2.38 in afternoon trading.
Ford shares tumbled to $2.10 Wednesday, marking their lowest price since April 5, 1984, according to the Center for Research in Security Prices.
The center's historical price is adjusted for splits and other changes.