Interest Rate Roundup

Friday, June 20, 2008

S&P puts GM, Ford, Chrysler on credit watch negative

Ouch, that's going to leave a mark -- Standard and Poor's just put its ratings for General Motors, Ford and Chrysler on CreditWatch with negative implications. S&P is also putting its ratings on their finance units (GMAC, Ford Motor Credt and DaimlerChrysler Financial Services Americas) on watch negative. The reason? You guessed it -- plunging demand for SUVs and pickups due to surging energy prices. The Detroit Free Press had a story earlier this week about how June is shaping up to be an extremely nasty month.

1 Comments:

  • What's your prognosis on the annual run rate (sales) of automobiles?

    I remember it has been running around 15-16 million for last few years. Latest figures indicate the annualized rate of 12 million.

    But I think this also may prove to be high in near future. Won't be surprised if it falls below 10 million.

    One really has to wonder how they can afford to stay in business except for some radical cost cutting and dramatic change of contracts with UAW.

    Any thoughts?

    By Blogger shankar, at June 21, 2008 at 7:30 PM  

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