GM shares tumble to 65-year low

In morning trading, GM shares tumbled 56 cents, or 17 percent, to $2.80 after earlier falling as low as $2.75--easily passing Monday's more than 60-year low of $3.02.

Tuesday's low point marked GM's cheapest trade since Jan. 20, 1943, according to the Center for Research in Security Prices at the University of Chicago. The price is adjusted for splits and other changes.

On Monday, GM shares closed down 23 percent after a firestorm of bad news that began when some industry analysts predicted the automaker would collapse without a government bailout. Deutsche Bank's Rod Lache said the automaker could run out of cash by the end of the year if it doesn't receive some kind of federal assistance. In cutting his price target to $0, he essentially called GM's common stock worthless.

Meanwhile, GM warned in a regulatory filing that Delphi Corp., its former parts operation that was spun off as a separate company in 1999, may never emerge from Chapter 11 bankruptcy protection. In addition, it echoed statements from last week that the mortgage unit of its finance arm, GMAC, may not survive.

GM also announced plans to cut 1,900 factory jobs on top of the 3,600 cuts announced on Friday.

Lawmakers representing states with large numbers of auto workers are pressing the Bush administration to use part of its $700 billion bailout plan to prevent U.S. automakers from collapsing under a weak economy. Democratic leaders in Congress and President-elect Barack Obama also are urging President Bush to support emergency aid measures for the automotive industry.

The three U.S.-based automakers want an additional $50 billion in loans from Congress to help them survive the tough economy and pay for health care obligations for retirees. That's on top of a previously approved $25 billion government loan package for new technology.