The latest news in the automobile world is that automobile industry giants, GM and Ford stocks record big gains. These recent gains hint to the expectations that investors are showing faith that the automakers like Ford and General Motors will be able to get federal loans.
It was the first time in the last 28 years, when the shares in General Motors Corp. and Ford Motor Co. recorded their biggest single-day gains. On one hand, GMʼs stock gain jumped from $ 1.25 to 35.11 %, i.e. nearly $ 4.81 in the New York Stock Exchange. On the other hand, Ford gained 49 cents or 29.52% in its shares finishing it at $ 2.15.
According to Bloomberg News, these are supposed to be the biggest single-day gains in about three decades for both these automobile makers. Rod Lache, Deutsche Bank analyst revealed that he expected these two biggest automakers to present relatively aggressive restructuring plans to Congress sometime during next week to request for $ 25 billion in federal loans.
