Some of the key automotive stocks ended the week with a modest reprieve after being hammered on markets around the world for most of the week, but the upturn in shares of General Motors, Ford and other auto-related manufacturers and retailers barely begins to make up for the losses they’ve experienced since traders began to panic over fears of a double-dip global recession.
It’s hard to point to any single factor that triggered the week’s sell-off since so many things appear to be going wrong, from the downgrade of Greek banks to the U.S. Federal Reserve’s warning that the economy is likely to take more time than expected to recover.
But in keeping with the old adage that when the economy catches cold the auto industry gets pneumonia, companies like GM, have been among the most hard-hit.
Detroit stocks were among the hardest hit. Ford Motor Co., generally seen as the strongest of the domestic makers, bounced back slightly on Friday but still failed to close above the $10 mark, at $9.86, well below its 52-week high of $18.97.