General Motors and Ford Motor Co. are being challenged operationally and financially in North America as never before.
Market share for these two companies has eroded significantly, and sales of their most profitable products have plummeted.
Public sentiment regarding such vehicles has turned more negative than previously.
We are still nervous about our ratings, even at the reduced levels.
Ford has experienced a marked deterioration in its pension funding levels due to poor investment portfolio performance,
In the past we might have felt at different points that the concerns about bankruptcy risk were way overplayed.
In the past, we might have felt at different points that the concerns about bankruptcy risk were way overplayed.
We haven't factored anything into the rating (but) it's worth monitoring closely. It's a big unknown.
Product design issues are also an important concern here, as the companies have shown little ability to foresee market trends, such as the demand for crossover utility vehicles and gasoline-electric hybrids,
We believe soaring gasoline prices after Hurricanes Katrina and Rita are leading to an accelerating decline in demand for S.U.V.'s, ... disproportionate reliance on S.U.V.-related earnings.
