DKW 86 7,431 Posted May 5, 2005 Share Posted May 5, 2005 Link Read several more articles like this over the week. See BusinessWeek for a real tough to read reality check. S&P Cuts GM, Ford Credit Ratings to 'Junk'May 5, 2:29 PM (ET) By JOHN PORRETTO DETROIT (AP) - Standard & Poor's Ratings Services cut its corporate credit ratings to junk status for both General Motors Corp. (GM) and Ford Motor Co. (F), a significant blow that will increase borrowing costs and limit fund-raising options for the nation's two biggest automakers. Shares of both companies fell 5 percent or more after Thursday's downgrades, and the news sent the overall market lower. The decision by one of the nation's most respected ratings agencies comes as the two iconic American automakers are losing market share at home to Asian automakers, seeing sales soften for their most profitable models and are facing enormous health care and post-retirement liabilities. The credit ratings agency said its downgrade of GM's long-term rating below investment-grade status reflects its conclusion that management's current strategies may not be effective in dealing with the automaker's competitive disadvantages. Link to comment Share on other sites More sharing options...
Piglet 0 Posted May 6, 2005 Share Posted May 6, 2005 So what are the Asian companies doing that undercuts us? Cheaper cars? Higher quality? Gas mileage? Workmanship? I'd like to see if those plants Ford and GM moved overseas are turning out as good a product as the American workers used to make. Link to comment Share on other sites More sharing options...
DKW 86 7,431 Posted May 7, 2005 Author Share Posted May 7, 2005 I cant say for GM. But if you drive a Ford Crown Vic, Mercury Marquis, or Lincoln Town Car, you should thank the assembly plant in Mexico. Same thing for ANY Dodge Pickup. Link to comment Share on other sites More sharing options...
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