GM, Ford stocks hit historic lows

Shares of General Motors Corp. and Ford Motor Co. sank to historic levels Thursday after Morgan Stanley Research cut its earnings forecasts based on a lowered outlook for U.S. auto sales.

Ford stock fell to its lowest level since 1985 and the price of GM stock fell to its lowest level since 2006, near the height of speculation that the automaker would need to declare bankruptcy if it didn't speed up its turnaround.

Ford shares fell to $5.12 early in the day, but the Dearborn automaker's shares rebounded slightly, closing down 31 cents, or 5.4%, at $5.39, its lowest price since November 1985, according to Bloomberg.

GM stock started the day with a steep drop to $19.07 — its lowest level since April 2006 — but rebounded to close down 62 cents, or 2.96%, at $20.31.