GM and Ford: "junk."
From the NYT:
General Motors and Ford Motor lost their investment grade ratings Thursday, pushing two of corporate America's biggest borrowers into the ranks of junk bonds and rattling the financial markets with the message that the collective fortunes of the remaining two domestically owned automakers have sunk to their lowest points yet.
The downgrading by Standard & Poor's, the credit agency, reflects the inability of G.M. and Ford to make enough cars that people will buy without $5,000 rebates and other sales incentives, as well as worries that the two automakers may not emerge anytime soon from their troubles, starting with eroding earnings and sliding sales.
S.& P. said it was especially concerned about declining sales of the large sport utility vehicles that Ford and G.M. have depended on for profit, particularly as Japanese automakers step up their interest in the pickup truck market.
Great, bring on my private account! And why do I suspect that this will just be used as another GOP rationale for outsourcing and crushing American laborers?
General Motors and Ford Motor lost their investment grade ratings Thursday, pushing two of corporate America's biggest borrowers into the ranks of junk bonds and rattling the financial markets with the message that the collective fortunes of the remaining two domestically owned automakers have sunk to their lowest points yet.
The downgrading by Standard & Poor's, the credit agency, reflects the inability of G.M. and Ford to make enough cars that people will buy without $5,000 rebates and other sales incentives, as well as worries that the two automakers may not emerge anytime soon from their troubles, starting with eroding earnings and sliding sales.
S.& P. said it was especially concerned about declining sales of the large sport utility vehicles that Ford and G.M. have depended on for profit, particularly as Japanese automakers step up their interest in the pickup truck market.
Great, bring on my private account! And why do I suspect that this will just be used as another GOP rationale for outsourcing and crushing American laborers?
posted by Matt Sandwich | 10:07 PM
<< Home