Robert Barry Likely Quotations

Growing fleet sales, increasing competitive pressure in large pickups and escalating risk of weaker consumer spending is likely to hurt pricing and revenue.

Plans to sell a controlling GMAC stake would likely boost credit ratings and cut funding costs, ... divert earnings from GM.

But simply realizing tax-related benefits seems less likely to us.

We think such a move would not occur if prospects for traction on the turnaround plan were tighter. The management change comes at an inopportune time given the challenges ... and severe stresses on the North American business, some of which will likely require longer term attention.

Another deal with Delphi is likely forthcoming, but probably not before Mar. 30, posing risk of Delphi motions (to nullify contracts) and starting the union contract cancellation process.

These savings are a clear positive, but retiree liability cuts are likely to see some almost immediate offsets, from ongoing health care inflation, possible Delphi liability assumption and falling long-term rates.