GM's shares hit 17-year low

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Quote »GM's shares hit 17-year lowBy Sharon Silke Carty, USA TODAYDETROIT — General Motors (GM) shares fell to a 17-year low Thursday as bad news continued to dog the ailing automaker. After the company held its annual meeting with the United Auto Workers union Thursday, union leaders said they wouldn't change their current contract to help GM cut costs. Also dragging on shares Thursday: "unsubstantiated bankruptcy concerns," according to J.P. Morgan analyst Himanshu Patel. GM Chief Executive Rick Wagoner "obviously has a vested interest in painting a bleak financial picture to the UAW, but the balance sheet facts plainly argue that GM faces minimal, if any, near-term bankruptcy risk," Patel wrote in a research note. Still, shares closed down 6% at $26.66, the lowest point since Oct. 20, 1987, the day after the 1987 stock market crash. The drop-off followed by a day GM's acknowledgement that the Securities and Exchange Commission is investigating transactions with its main supplier, Delphi.Spokeswoman Toni Simonetti said GM received a subpoena related to an SEC investigation of Delphi, which was spun off from GM in 1999. In question are two transactions: a $237 million credit GM received from Delphi to defray recall expenses and an $85 million credit GM gave Delphi related to retiree costs. "We're confident that our accounting is correct on these transactions," Simonetti said. After Delphi disclosed earlier this year that it has accounting issues, GM reviewed its accounting and found no problems with the transactions. ...Dave Moore, chairman of the Pontiac, Mich., UAW local, said he's seen worse times for the company during his 29-year tenure, especially during oil shortages in the 1970s. Business isn't bad enough to persuade his members to adjust their benefits. "I wouldn't say they're ready to give up anything," he said. From USATODAY --> http://www.usatoday.com/money/...=Juno'Business isn't bad enough?' No, let's wait until the patient is dead and buried before beginning CPR!