F&I Management & Training

General Motors shares have fallen to their lowest level in more than 53 years amid concerns about the carmaker's future. Investment bank Merrill Lynch warned that GM needs to raise funds and that bankruptcy was "not impossible". GM has suffered from falling sales as US consumers have cut back on spending and record fuel costs have seen them switch to smaller, more efficient cars. GM's shares hit a low of $9.96, before closing down 15% at $9.98 on Wednesday. The share price touched its lowest level since September 1954, when the stock hit $9.92 during trading. GM shares have fallen 60% so far this year and Merril Lynch predicted that the shares could fall even further. "We believe there is potential downside in the stock below $7 and that bankruptcy is not impossible if the market continues to deteriorate and significant incremental capital is not raised," said analyst John Murphy. Merrill's had previously predicted a value of $28 for GM's shares.

DATED: 07.07.08

FEED: AW