Oil cost sinks auto stocks
The price of regular gasoline averaged $3.98 on Friday, according to the AAA Daily Fuel Gauge Report. That is up from $3.13 a gallon a year ago.
Shares of Detroit's automakers, foreign rivals and all large public suppliers took a dive as a result of the increases.
Ford Motor Co. shares Friday closed down 36 cents, or 5.63%, at $6.04. In April, Ford shares had reached $8.40 a share after Ford announced a surprise $100-million first-quarter profit. But now it is intensifying its cost cutting as the market continues shifting toward fuel-efficient cars.
Meanwhile, shares of General Motors Corp. closed down 83 cents, or 4.9%, at $16.22.
On Tuesday, GM said it will idle four truck plants and intensify its focus on fuel-efficient cars.
[Editor's Note: Oil up $11 in one day. The Arabs look at all the stupid greedy Americans driving their gas-guzzling big trucks and SUVs and say, raise the price…..$10 per gallon here we come.]