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10-09-2006, 11:00 AM
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BusinessWeek Online
Investors Throw GM into Reverse
Monday October 9, 8:08 am ET
After their recent rally, shares of General Motors (NYSE:GM - News) appear to be pulling a U-turn. The stock dropped 6% to 31.13 on Friday as some negative headlines gave investors pause. The shares reached a 52-week high of 34.00 in September.
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Sentiment soured toward the automaker after GM, Nissan Motor, and Renault announced they are no longer in talks to explore a global automotive partnership. GM is suffering from market share erosion in the U.S. and weakening sales of its midsize and large SUVs. The company is undertaking yet another painful round of cost reductions, production capacity cuts, and job cuts, but the possibility of a successful link-up with Nissan and Renault had fostered some optimism among investors.
Another worry for the Street: A report Friday on wsj.com that GM director Jerome York, aide-de-camp of investor Kirk Kerkorian, the automaker's biggest shareholder, is quitting the company's board after word of the breakdown in takls with Nissan and Renault.
Any departure by York may not be surprising in light of negative headline No. 3: An SEC filing that Kerkorian's Tracinda Corp. will review its options related to its GM holdings. Kerkorian, who has built up a 9.9% stake in the automaker, has lobbied for sweeping changes in the way GM runs its operations to boost the value of his holding.
complete article here... (http://us.rd.yahoo.com/finance/news/rss/story/*http://biz.yahoo.com/bizwk/061009/pi20061006115998.html?.v=1)
BusinessWeek Online
Investors Throw GM into Reverse
Monday October 9, 8:08 am ET
After their recent rally, shares of General Motors (NYSE:GM - News) appear to be pulling a U-turn. The stock dropped 6% to 31.13 on Friday as some negative headlines gave investors pause. The shares reached a 52-week high of 34.00 in September.
ADVERTISEMENT
Sentiment soured toward the automaker after GM, Nissan Motor, and Renault announced they are no longer in talks to explore a global automotive partnership. GM is suffering from market share erosion in the U.S. and weakening sales of its midsize and large SUVs. The company is undertaking yet another painful round of cost reductions, production capacity cuts, and job cuts, but the possibility of a successful link-up with Nissan and Renault had fostered some optimism among investors.
Another worry for the Street: A report Friday on wsj.com that GM director Jerome York, aide-de-camp of investor Kirk Kerkorian, the automaker's biggest shareholder, is quitting the company's board after word of the breakdown in takls with Nissan and Renault.
Any departure by York may not be surprising in light of negative headline No. 3: An SEC filing that Kerkorian's Tracinda Corp. will review its options related to its GM holdings. Kerkorian, who has built up a 9.9% stake in the automaker, has lobbied for sweeping changes in the way GM runs its operations to boost the value of his holding.
complete article here... (http://us.rd.yahoo.com/finance/news/rss/story/*http://biz.yahoo.com/bizwk/061009/pi20061006115998.html?.v=1)