Yesterday GM’s stock dropped over 30% to close at a level never seen before in my lifetime.  In fact, if you’re not at least 58 years old, you haven’t seen it either (and let’s be real, if you have to be at least, lets say, 20 years old to pay attention to the stock market, you would be 78 or older to remember GM at this price).   So it’s safe to say we are in unchartered territory for GM as a company if you are reading today.  So what’s a US automaker to do?  And how did this happen in the first place?

I have a friend that is certain that the fall of the SUV is GM’s root issue.  While Honda and Toyota are busy making gas sipping vehicles, GM is pushing out Yukon’s and Sierra’s as fast as they can.  While I believe it is true that more people are buying these smaller vehicles today, it’s far from the whole issue.

GM has had the 2nd best selling vehicle for a while, the Chevy Silverado  This year it won’t be the case, but I think gas is only part of it.  I think a major reason trucks aren’t being purchased anymore is that construction has taken a huge nose dive.  People that build houses need trucks.  Houses aren’t being built, so trucks aren’t sold.

Still though, GM has had a bigger issue of profitability even before today.  They had loss upon loss even when their truck sales were strong.  Cobalt and Impala are also strong sellers, yet the company can’t make a buck.  I don’t know all of what’s ailing GM, but it’s much more than gas prices.  Gas, and this recent credit crises, are the straw that broke the camel’s back.

What’s in store for GM?  Who knows.  I wouldn’t be surprised that they either get dismantled or taken private, or both, similar to Chrysler.  There is a lot more pain to go before they will move forward as a company.  Perhaps if they can make Volt profitable and a good seller, there is hope for GM.