On Monday, March 17, in response to the volatile state of the Wall Street financial markets, both General Motors and the Ford Motor Co. saw their stock close at new 52-week lows.

In spite of a slight rally of 21.16 points by the end of the market day, GM closed at $17.83 down $1.39 a share for a 7.23 percent decline. The previous 52 week low was $19. For its part, Ford lost 3.4 percent and fell a penny below its previous low, closing at $5.11 a share.

Compared to their prices the previous Friday, Ford opened Monday at $5.02 off 27 cents with GM at $18.72 off 50 cents. Like many stocks, the automakers positions were effected by the precarious state of the investment bank Bear Stearns and the deal brokered by the Federal Reserve over the weekend to prevent its collapse.

Bear Stearns, which traded a year ago in excess of $150 a share, will be sold to JP Morgan for the fire sale price of $2 a share, a tailspin that rattled the confidence of the market and renewed overall doubts about the strength of the American economy.

Economic uncertainty from the floundering mortgage industry has already been felt by automakers as more loan holders are unable to meet payments and fewer Americans feel sufficiently confident to make a new car purchase.