Ford, GM Shares Fall, Drive Down Dow

DETROIT (AP) -- Banc of America downgraded General Motors and Ford stock on Wednesday, driving the Dow Jones industrials down more than 280 points to close below 9,000 for the first time since October.

GM slid $3.53 to $47.61, and Ford declined $1.12 to $13.99, after Banc of America analyst Ron Tadross downgraded the stocks to "market perform" from "buy."

Tadross also lowered his 2003 earnings estimates for both automakers, saying each would be forced to answer the enhanced powertrain warranty announced Sunday by DaimlerChrysler AG.

The seven-year/70,000-mile limited powertrain warranty became available Tuesday on all purchased or leased Chrysler, Jeep and Dodge brand vehicles. It covers engines, transmissions/transaxles, transfer cases and axles and is transferable to subsequent owners at no extra cost.

Ford spokesman Dave Reuter said the No.2 automaker was not ready to match DaimlerChrysler's warranty.

"We'll continue to monitor the situation," Reuter said Wednesday. "We'll continue to respond with programs that are right for our customers and our shareholders."

Messages left Wednesday evening with GM spokeswoman Toni Simonetti were not immediately returned.

The new Chrysler Group warranty replaced a 7-year, 100,000-mile "powertrain pledge" introduced Nov. 1.

DaimlerChrysler stock closed at $44.12 Wednesday on the New York Stock Exchange, down $2.18.