The1985divo
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<DIV id=storyBody>SHARES of struggling General Motors closed at their lowest level in nearly two decades overnight as investors reacted to a strike threat at its largest auto parts supplier.
After having dropped more than 30 percent in the past month, shares of the world's largest automaker closed down 5.8 per cent at $US21.29, up from a low of $US20.90 in afternoon trading.
It was the weakest close since the crash of October 1987, said Art Hogan, an analyst at Jefferies, who said some investors are concerned that GM could follow its subsidiary, Delphi, into bankruptcy.
They have the same issues in term of legacy costs," he said
"If they had to follow the same path and file for bankruptcy as well, that would be a major issue."
A spokeswoman for GM downplayed those fears, and said the company had recently obtained major concessions from the union on health care costs.
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After having dropped more than 30 percent in the past month, shares of the world's largest automaker closed down 5.8 per cent at $US21.29, up from a low of $US20.90 in afternoon trading.
It was the weakest close since the crash of October 1987, said Art Hogan, an analyst at Jefferies, who said some investors are concerned that GM could follow its subsidiary, Delphi, into bankruptcy.
They have the same issues in term of legacy costs," he said
"If they had to follow the same path and file for bankruptcy as well, that would be a major issue."
A spokeswoman for GM downplayed those fears, and said the company had recently obtained major concessions from the union on health care costs.
<DIV id=promoIslandRight>
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