GM and Ford = Junk

[Timpo]

As some of you guys know, Moody's Corporation (stock investors service company) recently announced that they just downgraded Ford and GM's stock value as "junk" just because they're doing sooo bad and not worth buying their stock.

According to Moody's...

As of May 10th, GM = Junk
As of May 13th, Ford = Junk

The media say Moody's downgrading will effect to their future sales as well.

Also, Standard & Poor's (the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research, data, and valuations) rated both GM and Ford as "Junk" Car Makers as of May 10th.

I think GM and Ford need some improvements, they aren't doing very well. The Big 3 asked Japanese companies to raise their MSRP, then they failed, I don't know what they're doing nowadays.

 

[4AU4LIFE]

Doesn't seem to be hurting the sales of F-series truck, Explorers, Expeditions, Focus, Mustangs or Crown Vics.

 

[NemesisX]

As some of you guys know, Moody's Corporation (stock investors service company) recently announced that they just downgraded Ford and GM's stock value as "junk" just because they're doing sooo bad and not worth buying their stock.

Timpo, It is the BOND RATINGS that have been downgraded to junk status...NOT the stock value....they are two VERY different things (ability to pay bondholders back = bond ratings)

Either way, its not a good sign!

 

[NemesisX]

Doesn't seem to be hurting the sales of F-series truck, Explorers, Expeditions, Focus, Mustangs or Crown Vics.

It does when they cant make any profit from them...they are still using deep discount incentives to move them

 

[steveny]

How long before GM and Ford claim their pension plans are over funded. LOL 15 years from now "we the people" will be paying retirement for all the airlines and the car manufacturers, even sooner for the airlines.

 

[steveny]

It does when they cant make any profit from them...they are still using deep discount incentives to move them

IMO discounts are when something is priced under what it's true value is. IMO ford and gm price vehicles well above what they are truly worth then give "deep discounts" to make it appear as though the consumer is getting a better deal than they actually are.

If the manufacturers want to make money they need to cut the cost of labor. When they pay a worker 30 bucksan hour who has the qualifications to work at burger king how can they make a profit? Better than half the jobs in auto assembly could be done for minimum wage.

 

[4AU4LIFE]

It does when they cant make any profit from them...they are still using deep discount incentives to move them

We can't keep enough F-series, Explorers or Mustangs. The other cars sell well but not as good.
From what I understand, there is about a 12 week wait on a new Mustang GT right now.

 

[AU_NSX]

According to Moody's...

As of May 10th, GM = Junk
As of May 13th, Ford = Junk.

Finally someone agrees with what I have been saying for years! :biggrin:

 

[dawggpie]

How long before GM and Ford claim their pension plans are over funded. LOL 15 years from now "we the people" will be paying retirement for all the airlines and the car manufacturers, even sooner for the airlines.

grr, people need to learn how to prepare better for their retirement. Shouldn't be everyone elses responsibility to support people that are not responsible enough to support themselves. I know it's not their fault that the pension plans are going under, but I sure as hell am not going to rely on just a pension for retirement money. Not their fault completely, but also not fair that the rest of us are paying for it...

 

[john@johnhudakracing]

If the manufacturers want to make money they need to cut the cost of labor. When they pay a worker 30 bucksan hour who has the qualifications to work at burger king how can they make a profit? Better than half the jobs in auto assembly could be done for minimum wage.

All I know is that putting myself in their shoes, and facing DOT & NHTSA regulators and every trial lawyer in the country... I don't want the same person that makes my Taco at Taco Bell plugging in my SRS connectors.

I think this forum is like the twilight zone sometimes... jiffy lube personel aren't qualified to do NSX oil changes but are surely qualified for the medial task of production vehicle assembly. :wink:

 

[sabashioyaki]

Cost of labor isn't what's killing American automakers, it's pension and health care. I doubt there is a way out without turning over the pension to the govt.