Should Ford replace GM in the Dow?

By Paul R. La Monica, CNNMoney
2009-5-13 12:16:00

NEW YORK (CNNMoney.com) -- General Motors has been a member of the Dow Jones industrial average for nearly 84 years. But it's likely only a matter of time before the company is kicked out.

And if that's the case, its Big Three rival Ford Motor might be a possible candidate to replace it.

The decision is up to the editors at the Wall Street Journal, but it does just seem to be a matter of when -- not if -- GM will get the boot: GM's stock, at a little more than a buck a share, was trading at a more than 75-year low Wednesday morning..

There's more to it than the stock price, too.

John Prestbo, editor and executive director of Dow Jones Indexes, said in an interview with me Wednesday that if GM files for bankruptcy or if the government takes control of the company, there would be no choice but to remove it.

Both could happen in the next few weeks. GM must reach agreements with creditors and unions by the end of the month to restructure or it will be forced by the Obama administration to enter bankruptcy protection as Chrysler LLC did.

	Investment Basic Investment Overview Investment Approache Fundamentals Data Investment Stories www.fxj108.com	Should Ford replace GM in the Dow? By Paul R. La Monica, CNNMoney 2009-5-13 12:16:00 NEW YORK (CNNMoney.com) -- General Motors has been a member of the Dow Jones industrial average for nearly 84 years. But it's likely only a matter of time before the company is kicked out. And if that's the case, its Big Three rival Ford Motor might be a possible candidate to replace it. The decision is up to the editors at the Wall Street Journal, but it does just seem to be a matter of when -- not if -- GM will get the boot: GM's stock, at a little more than a buck a share, was trading at a more than 75-year low Wednesday morning.. There's more to it than the stock price, too. John Prestbo, editor and executive director of Dow Jones Indexes, said in an interview with me Wednesday that if GM files for bankruptcy or if the government takes control of the company, there would be no choice but to remove it. Both could happen in the next few weeks. GM must reach agreements with creditors and unions by the end of the month to restructure or it will be forced by the Obama administration to enter bankruptcy protection as Chrysler LLC did.