General Motors Corp. (GM) shares fell to a 70-year low Friday on worries the company's latest recovery plan won't work and could render its stock worthless.

GM stock fell as low as $1.52 Friday before recovering to close at $1.77, down 23 cents, or 11.5% recently. In recent after-hours trading the shares are down to $1.76. GM's market capitalization value hovers around $1 billion. The low was the worse since the Great Depression era, according to data from the Center for Research in Security Prices at the University of Chicago.

"Reality is setting in that there will be no miracle for existing shareholders," said Efraim Levy, an equity analyst at Standard & Poor's. "It's pretty much a mathematical thing."

The plunge temporarily knocked GM's share price under that of rival Ford Motor Co. (F). GM hasn't closed below Ford since at least 1972. Ford, a much smaller company than GM, now has more than three times the market capital. Ford shares closed down 5 cents, or 3.1%, to $1.58.

As it crosses benchmark levels, GM faces the threat that mid- and large-cap investors will be forced to discard the company's stock.

GM on Tuesday said it could run out of money as soon as March if it doesn't get more cash from the U.S. government. The company, surviving on a $13.4 billion federal loan, wants another $16.6 billion in U.S. aid along with billions more from other countries.

In raising its aid request, GM promised to slash jobs, close factories and eliminate dealers, brands and nameplates. The auto maker has lost more than $70 billion since 2004.

The moves failed to win over Wall Street for a number of reasons.

GM so far has been unable to strike deals with the United Auto Workers and bond holders to convert nearly $30 billion of debt into equity. Negotiations continue with both groups.

If GM reaches an agreement with the union and bond holders, the company may have to offer billions in additional shares in debt-for-equity swaps, further diluting its stock.

Meantime, should GM get the loans it's requesting from the federal government, the company's overall debt would grow. Along with the $30 billion GM wants from the U.S. Treasury, the auto maker wants at least $6 billion from other governments and $8 billion from the U.S. Department of Energy to produce more fuel-efficient vehicles.

"We believe GM's equity is worthless, regardless if the company receives additional funding from the government or files for bankruptcy," Bunckingham Research analyst Joseph Amaturo said in a research note.

Chrysler LLC also asked for more aid this week. The smallest of Detroit's Big Three auto makers asked for $5 billion in addition to $4 billion it already received.

Ford has not requested aid although in December the company said it may eventually need access to a government line of credit if the global market continued to deteriorate.

The global auto industry has been devastated by sinking sales that led by a severe economic slump in the U.S. Consumers are staying away from showrooms as the grapple with rising unemployment and losses in their retirement funds and home values.

Friday was bleak day overall for the automotive sector.

"The auto industry is in collapse, GM is getting bailed out by the government, credit conditions are miserable," said Michael Ward, an analyst at Soleil. "I don't know if you can find any more negatives."

The severity of the fallout from GM became more clear Friday as its Swedish unit Saab received credit protection from a court and GM's South Korean and German units both reached out toward their own governments for help.

Trollhaettan-based Saab Automobile AG will break off from GM and become its own company under a process similar, although not identical, to Chapter 11 bankruptcy in the U.S. This move could put payments to suppliers in doubt.

GM has said it is working to ensure timely payments to suppliers. But the news still sent shivers through the whole industry, said Levy.

"The financials of the suppliers is a concern," he said. "If these companies cannot stay financially viable, it could cause a logjam in industry wide production."

Suppliers closed lower Friday. Shares or ArvinMeritor Inc. (ARM) down 21.5% to 51 cents, Goodyear Tire & Rubber Co. (GT) down 2.6% to $5.97 and Modine Manufacturing Co. (MOD) off 7% to 93 cents.

-By David Benoit, Dow Jones Newswires; 201-938-2472; david.benoit@dowjones.com.

-By Sharon Terlep, Dow Jones Newswires; 248-204-5532; sharon.terlep@dowjones.com.