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Old 10-04-2005, 04:00 PM   #1 (permalink)
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Ford ratings under less pressure than GM's - S&P

Not that it makes much of a difference . . . Today I am not my usual optimistic charming self. I guess it was that idiot I overheard this morning in Bloomberg saying that in ten years either one of GM or Ford will be history . . . or something to that effect.

Ford ratings under less pressure than GM's - S&P
Tue Oct 4, 2005 01:19 PM ET
By Dena Aubin
NEW YORK, Oct 4 (Reuters) - Ford Motor Co. will likely remain a higher-rated company than General Motors Corp. as both automakers' ratings slide deeper into junk territory, Standard & Poor's said on Tuesday.

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Old 10-04-2005, 04:20 PM   #2 (permalink)
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Re: Ford ratings under less pressure than GM's - S&P

Quote:
Originally Posted by SobeSVT
Not that it makes much of a difference . . . Today I am not my usual optimistic charming self. I guess it was that idiot I overheard this morning in Bloomberg saying that in ten years either one of GM or Ford will be history . . . or something to that effect.

Ford ratings under less pressure than GM's - S&P
Tue Oct 4, 2005 01:19 PM ET
By Dena Aubin
NEW YORK, Oct 4 (Reuters) - Ford Motor Co. will likely remain a higher-rated company than General Motors Corp. as both automakers' ratings slide deeper into junk territory, Standard & Poor's said on Tuesday.

More here
I fear that "idiot" on Bloomberg is on to something. Oh well.
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Old 10-04-2005, 04:35 PM   #3 (permalink)
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Re: Ford ratings under less pressure than GM's - S&P

Im sure hoping this is far from the truth....but Im sure GM has many more obstacles to overcome than any other company.
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Old 10-04-2005, 04:55 PM   #4 (permalink)
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Re: Ford ratings under less pressure than GM's - S&P

Bankruptcy is a possibility, but I don't see either company simply folding, certainly not Ford. They'd go private before that.
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Old 10-04-2005, 05:09 PM   #5 (permalink)
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Re: Ford ratings under less pressure than GM's - S&P

they need to merge - rationalize production - govt guarantees their health costs - pretty much our govt needs to step in and say we need these companies for natl security, in order to have some manufacturing expertise left - hey kind of like japan did in the 1950-s thru now - except, except - we dont embargo foreign cars like them!
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Old 10-04-2005, 05:26 PM   #6 (permalink)
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Re: Ford ratings under less pressure than GM's - S&P

There should be a law prohibiting talking heads outside the car industry from making declarative statements about the future of the auto business. What do these guys know from future product, rising quality scores, and conquest customers? Nothing. They see a Chevy Lumina parked on the street and say to themselves, boy GM is in trouble.
In 3 years they'll all be writing about how GM's market share has been rising steadily for 25 months and those imports are all in big trouble.
Blah blah blah
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Old 10-04-2005, 05:50 PM   #7 (permalink)
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Re: Ford ratings under less pressure than GM's - S&P

OMG, GM better not merge with Ford.

GM is still the worlds largest auto makers and is still seeing sales growth throughout the world. Its just the North American market which GM isnt doing as good as it should but you know what the NA market isnt the only market on the planet beleive it or not.

If anything I would be worried about Ford which has seen sales slides not only in the NA market but in other regions in the world as well.
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Old 10-04-2005, 07:21 PM   #8 (permalink)
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Re: Ford ratings under less pressure than GM's - S&P

I forgot how to spell idiot...
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Old 10-04-2005, 07:52 PM   #9 (permalink)
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Re: Ford ratings under less pressure than GM's - S&P

While we're on inspiring news stories....

A family member is involved in the Wall Street rat race, interacts with hedge fund types. The head of one of the most revered short sellers met with GM mgt. recently, and subsequently has been telling everyone that a Chapter 11 filing is inevitable.

This guy is probably worth several hundred million, and he didn't get weathly by being wrong too often. A scary prediction.
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Old 10-04-2005, 08:12 PM   #10 (permalink)
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Re: Ford ratings under less pressure than GM's - S&P

Ford and GM merging is not going to happen. I could envision a Ford family buyout of the stockholders though. They own so much of it as it is. It would get them out of the short term Wall Street mindset and make some things easier in that regard. A leaner meaner FoMoCo could work.
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Old 10-04-2005, 08:38 PM   #11 (permalink)
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Re: Ford ratings under less pressure than GM's - S&P

Quote:
Originally Posted by FoMoCo Fan
Ford and GM merging is not going to happen. I could envision a Ford family buyout of the stockholders though. They own so much of it as it is. It would get them out of the short term Wall Street mindset and make some things easier in that regard. A leaner meaner FoMoCo could work.
It works for BMW doesn't it?
Ford unleashed works for me. Definitely!
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Old 10-04-2005, 09:25 PM   #12 (permalink)
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Re: Ford ratings under less pressure than GM's - S&P

The problem is the only thing that really solves the legacy costs and union stuff is Chapter 11. And Ford won't do that, because of the family's stake in the company.
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Old 10-04-2005, 10:21 PM   #13 (permalink)
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Re: Ford ratings under less pressure than GM's - S&P

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Originally Posted by FoMoCo Fan
The problem is the only thing that really solves the legacy costs and union stuff is Chapter 11. And Ford won't do that, because of the family's stake in the company.
But what is missing is a lever to gain the necessary concessions from labor. My guess is that a Chapter 11 filing by GM would be sufficient, but I could be wrong.

Look at those knuckleheads in the airline industry who repeatedly opted to strike and lose their jobs rather than give up any of their 'rights.'

The 'smart' money on the Street says that autos follow airlines follow steel. We'll see. In any event, you can't contemplate these scearios and still think BPG is a likely survivor. Maybe add Saturn as well.
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Old 10-05-2005, 04:18 AM   #14 (permalink)
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Re: Ford ratings under less pressure than GM's - S&P

Why is Ford's stock going down? I thought the F-150 and Mustang were selling like crazy.
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Old 10-05-2005, 08:46 AM   #15 (permalink)
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Re: Ford ratings under less pressure than GM's - S&P

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Originally Posted by GMTrucks1500
Why is Ford's stock going down? I thought the F-150 and Mustang were selling like crazy.
http://media.ford.com/article_displa...&make_id=trust
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