Tales From the Crypt: GM Unit Under Water
Things get uglier everyday in the world of domestic auto makers.Delphi (DPH) the nation's largest auto supplier, filed for bankruptcy protection on Saturday, the largest such filing ever in that industry.
"The move reinforces the industry's deepening financial crisis and is a sign that the labor upheavals in the airline and steel industries have reached Detroit," said the New York Times on Sunday.
We'll see how General Motors' (GM is Delphi's parent company) shares react on Monday, since GM holds the onus of having to settle retirement benefits.
As of Friday's close, DPH's shares sat at under $1.
GM shares, after a short term jump over the summer, remain in their downtrend.
As we are with the airline industry, we're shying away from the auto industry -- there is absolutely no reason for one to invest in such a fiercely competitive environment where the long term outlook is this dismal.
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