GM & Ford Downgraded to Junk: Thoughts & Market Comments
About an 90 minutes ago, the ratings of Ford and GM got downgraded to JUNK by S&P. GM was downgraded by two notches: GM has been downgraded three times by S&P since 2001 Both the long and the short-term corporate credit rating of GM and GMAC and all related entities were rated BBB-/A-3 and now they are rated BB/B-1. Total outstanding GM debt affected by the downgrade is almost $300 billion. While a downgrade had been widely talked about, this is still a very significant announcement in the market. What is even worse in this announcement is that the outlook is also negative. Had GM been more aggressive in spinning off is financial company GMAC while it was very profitable, the outcome would have been much better for shareholders.

The two automotive companies have been suffering from deteriorating sales and lack of improvement in their product lines vis-

 

Not good news.

 

just what our economy needed

something good needs to start happening and FAST!

 

I still like GM's dividend

 

kirk kerkorian is here to save the day..

oh this is just what gm needs.. an 87 year old man influencing their operations.

more retro mobiles please!!

at least this way bob and kirk can go hit up costco together and put the bulk package of depends on the corporate card! that will save gm some money!

 

He affected their daily bottom line enough to add $5 to their stock price in one day.

 

billionaires can do that shit

i know i work for one

 

Maybe the boards of GM and Ford fire their management teams and pay Toyota, Honda and Nissan and have their management people manage GM and Ford.

Afterall, they moved their productions to the States, using Americans to build their cars and trucks, and they are kicking GM and Ford's ass.

The problem is not American workers, the problem is high paying dumb ass GM and Ford executives who have failed their companies, their shareholders, their employees and maybe the country!!

Our country can not afford to see GM and Ford go bankrupt!!!!

 

[no_really] GM is the greatest company in the world!!! Any of you would be lucky to be doing half as well as them! They sell more cars than any other company! [/no_really]

Sorry, no_really, but I figured your blind defense of GM was coming so I just put it in for you. lol, just messin w/ya.

 

Here's some good news:

Qoted from Businessweek:

...GM, of course, is no ordinary company. With sales of $193 billion, it stands as an icon of fading American industrial might. Size and symbolism dictate that its fate has sweeping implications. After all, GM's payroll pumps $8.7 billion a year into its assembly workers' pockets. Directly or indirectly, it supports nearly 900,000 jobs -- everyone from auto-parts workers to advertising writers, car salespeople, and office-supply vendors. When GM shut down for 54 days during a 1998 labor action, it knocked a full percentage point off the U.S. economic growth rate that quarter. So what's bad for General Motors is still, undeniably, bad for America.

And:

Things got downright embarrassing in April when Toyota Chairman Hiroshi Okuda raised the possibility of hiking prices to give GM breathing space, saying, "I'm concerned about the current situation GM is in." (Toyota subsequently backed off.)

Oh, wait...

Like it or not, we need to see GM become a successful company. This can happen again, especially if ALL the parties come to the table and compromise (managers, unions, etc) GM can make good cars (Cadillac and the a lot of the new offerings are a good example) but it will be a tough road ahead.

http://www.businessweek.com/magazine/conte...32001_mz001.htm