Ford shares hit lowest price in nearly 23 years
Tuesday October 7, 8:01 pm ET
Ford Motor shares hit lowest price in nearly 23 years as Street remains jittery after rout
NEW YORK (AP) -- Shares of Ford Motor Co. slid to their lowest price in nearly 23 years Tuesday following the previous session's marketwide sell-off, as investors remained jittery over the Federal Reserve's decision to buy up corporate debt and Fitch Ratings cut the automaker's credit rating.
Ford shares fell 77 cents, or 20.8 percent, to close at $2.92 -- a trade not seen since November 1985.
The Fed said earlier Tuesday it planned to buy up massive amounts of commercial paper, a short-term financing mechanism that many companies rely on to finance day-to-day operations.
But the news did little to help Ford's stock, as questions about the Dearborn, Mich., automaker's credit lingered. Monday afternoon, Fitch Ratings lowered Ford's credit rating deeper into junk status, citing the growing impact of the credit crisis on auto sales and other aspects of the company's business.
Auto sales have remained weak this year, with September sales falling below 1 million vehicles for the first time in more than 15 years.
Oil prices, meanwhile, reversed course Tuesday after five straight days of declines. Light, sweet crude for November delivery rose $2.25 to settle at $90.06 a barrel on the New York Mercantile Exchange.
Shares of other automakers also declined. General Motors Corp. fell 92 cents, or 10.9 percent, to $7.56.
Toyota Motor Corp. lost $4.84, or 6.6 percent, to $68.54. Honda Motor Co. dropped $1.23, or 4.9 percent, to $24.11. Nissan Motor Co. gave up 48 cents, or 4.4 percent, to $10.51.
