GM, Ford Junk; I Like My Dodge
Standard and Poors are dropping their ratings for GM and Ford debt to “junk” status, making it much harder (therefore more expensive, as the expected return will be much higher) for them to issue bonds. This new rating moves them out of “investment” grade and into the realm of speculation if you sell them capital.
I wonder how much this has to do with the climbing cost of gasoline. The fact that Ford is in the mix indicates, to me, a failure of their Escape hybrid launch. GM has had cost troubles for years, so that's less of a surprise.
I drive a Dodge, and I've been looking at the new Charger and the Chrysler 300C for a while now.
Josh Poulson
Posted Thursday, May 5 2005 09:56 AM
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