Scott Sprinzen
Scott Sprinzen
bankruptcy change file files october ratings rule seriously threat
We take very seriously Delphi's threat to file for bankruptcy by October 17. If Delphi files for bankruptcy, we couldn't rule out a ratings change (for GM).
bankruptcy file october seriously threat
We take very seriously Delphi's threat to file for bankruptcy by October 17,
companies eroded market products profitable sales share
Market share for these two companies has eroded significantly, and sales of their most profitable products have plummeted.
actions current environment fact gasoline given large major seems
Given the current environment with gasoline prices, the fact that GM's major actions are so heavily weighted in mid- and large SUVs, that seems problematic,
act certain curtail funding marketing potential problems support
Under certain circumstances, G.M.A.C. could act to curtail its funding support of G.M.'s marketing operations, precipitating potential problems for G.M..
agreement announced auto care costs eventually expect ford general health reach reduction result similar union united workers
We expect Ford to eventually reach an agreement with the United Auto Workers union similar to that announced by General Motors Corp. that could result in a substantial reduction of Ford's burdensome health care costs in the long term.
nervous reduced
We are still nervous about our ratings, even at the reduced levels.
believe decline demand gasoline katrina leading prices reliance rita soaring
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.
dependent domestic introduced light market point product skilled truck
They've been skilled in their product development. But they, like their domestic competitors, are very dependent on light truck profitability. They've introduced some new S.U.V.'s at a point when that market is under a cloud.
ability concerns critical effect financial heightens north performance poor timely turnaround
This poor financial performance heightens concerns about the company's ability to effect a timely turnaround in its critical North American operations,
due ford funding investment levels marked pension poor portfolio
Ford has experienced a marked deterioration in its pension funding levels due to poor investment portfolio performance,
actions company earnings future maintain net positive sufficient weaker
These actions should be sufficient to maintain positive net liquidity in 2002, even with weaker earnings performance. But those aren't actions that can be relied on indefinitely. The future of the company relies on an earnings rebound.
ability companies concern crossover demand design foresee issues market product shown utility vehicles
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,
conclusion few last quarters results seen
At this juncture, it's our conclusion that this isn't a far-fetched possibility if the kind of deterioration in results we've seen over the last few quarters should continue.