Last week, 24/7 Wall St. listed GM’s (GM) odds of filing Chapter 11 between now and the end of the year at 30 to 1.
Wall St. seems to think things are getting worse, especially as the cost of oil stays high and US employment levels are worsening.
Today, GM’s shares are off 6% to $14.77. They hit a similar level in 1974 at the end of the Arab Oil Embargo. With crude at current prices, the embargo might as well still be on.
Most of GM’s cost cutting is behind it. The period when it could drop several billion dollars of expenses out of North America ended last year.
Big problem. No solutions. New odds, 25-to-1
Douglas A. McIntyre