While GM and Chrysler are no doubt pleased at the US Government?s approval of further short-term financial aid (think of it more as a stay-of-execution than anything else), Wall Street is reportedly hurting bigtime.
Concerns about the future of the US auto industry has driven share prices downward, with the Dow Jones Industrial Average dropping 199.92 points to 7576.36 in opening trading.
The Nasdaq composite also fell, as did the broad-market Standard & Poors 500 index. The former dropped 30.62 points to 1514.58, while the S&P 500 plunged 19.28 to 796.66.
After US President Barack Obama?s Auto Industry Task Force delivered its caveat-laden agreement for short-term aid to GM and Chrysler, and Obama himself described both companies as unviable, confidence in the US auto industry is at an all-time low.
With bankruptcy for one ? or both ? of those automakers a very realistic prospect, investors are pulling out of auto-related businesses in a big way; which probably has bigger ramifications for parts suppliers than it does for the chief culprits in this mess.