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S & P today rated the stocks for both companies as Junk... I understand it's based largely on the ageing workforce, and the fact that the companies could potentially be bankrupted by the retirement payouts required... Can you imagine North America with no GM and no Ford? Talk about your unemployment skyrocketing.

Here's the CBC link: http://www.cbc.ca/story/business/national/2005/05/05/carmakers-ratings050505.html
 

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Definately not good news for the General or Ford. This will significantly raise the cost of their debts, and hurt their competitiveness. :(

[PS, moved to Industry News section]
 

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Sure, it sounds bad, but let's bring up the Special K's, like K-Mart, Kay-Bee, and even, Khrysler, Chrysler, you know what I mean.

K-Mart and Kay-Bee went through some tough times in recent years, and now, almost miraculously, they're thriving. I'm sure the creditors are pissed that an incredible amount of debt was forgiven, but these companies are still around. Well, also, I guess there's no way to go but up when you're at the bottom. Chrysler was doomed, but now, look at 'em. The 300 series sold 150,000 cars in a year.

The whole GM badging of all their cars is more an attempt to sell stock, or at least confidence in the stock so people hold, rather than getting car buyers to buy GM cars, don't you think?
 

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I don't think you'll see them go away. More likely they would file bankcruptcy to get out of the pension and health care obligations. The companies would keep running.
 

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The companies stock was not downgraded to junk, it was their bond rating. Basically they have a credit score so low, they couldn't even get a loan for a Solstice. Oh yeah, first post.
 

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Ford had a similar problem about 5-6 years ago. Really thought they would be out of trouble by now. GM is huge and worldwide. Many people have some of their stock. Hopefully everyone will hold on to it and keep getting the $2.00 per share per year dividend. We'll be supporting them with the purchase of our Solstice's. Now, if they can only keep the excitement up for all the age groups; they'll recover soon.
 

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GM management and union are joining forces to seek help from the government in the health care area. They may be pushing for national health care program that would get rid of the strangling costs of insuring three retirees for every one worker building cars.
 
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