Thursday, November 17, 2005

GM now smaller than Ford....

GM's Slump Drops Market Capitalization

Thursday November 17, 11:43 am ET

GM's Slump Drops Market Capitalization to Less Than $12 Billion, Below Ford's

SAN FRANCISCO (AP) -- General Motors Corp. shares weakened further on Thursday, whittling down the market capitalization of the world's biggest carmaker to less than $12 billion.

At Thursday's open, GM's market cap, or the aggregate value of its stock, stood at $11.9 billion, compared with Google Inc.'s almost $112.5 billion and less than longtime rival Ford Motor Co. at $13.6 billion.

GM's shares slipped 8 cents, or 0.4 percent, to $21.21 in late-morning trading on the New York Stock Exchange.

The Detroit-based auto maker's stock fell to an 18-year low of $20.90 during the prior session on concerns about GM's financial hurdles and a showdown between the United Auto Workers and management at bankrupt Delphi Corp., a key parts supplier and former GM division.

An alliance of Delphi's union workers, including the UAW, is girding for a battle against the company's aggressive cost-cutting plans. On Wednesday, they said the company's latest contract proposal is "not a framework for an agreement but a road map for confrontation."

Ford's shares rose 1 cent, or 0.1 percent, to $7.66 on the NYSE.