American junk

GM and Ford see their credit rating reduced to junk status. 2

As Praktike mentioned, GM and Ford both had their corporate credit rating cut to junk status yesterday.

Mike Millikin (who is, as I may have mentioned, this week's InterActivist) has some thoughts -- and hopes -- on the matter.

Also, be sure to read this Carl Pope post, which offers some great historical perspective:

This sad saga stretches back more than a quarter of a century, since the industry failed to respond nimbly to the combination of Arab oil that was more expensive and Japanese sedans that were better made. Detroit had two choices -- one was to reach out to the nation and ask for public support in dealing with its underlying challenges. The other was to try sustaining itself by putting ever larger shells of sheet metal on old truck technology, and marketing the results as a passport to freedom and safety high above the road.

The industry took the second path.

I suspect history will view this as a real landmark in the troubled life and times of the U.S. auto industry.

David Roberts is staff writer for Grist. You can follow his Twitter feed at twitter.com/drgrist.

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  1. jdhlax Posted 8:24 am
    06 May 2005

    Chickens, Roosting, Reaping, And SowingCould anyone honestly claim that if Japanese automakers put the U.S. ones out of business, that the latter didn't deserve it and have it coming?  (I'm not necessarily talking about the workers, who may or may not deserve it, depending on which policies they supported or opposed.)

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  2. amazingdrx Posted 9:50 pm
    06 May 2005

    The demise of US automakers? Hybridize now!http://blogdrx.blogspot.com/2005/05/nyt-forum-post-on-latest-investment.html
    amazingdrx - 7:12 AM ET May 6, 2005 (#49571 of 49572)
    I hope you faithbased bush voters got lots of GM stock for your 401ks at the top yesterday after it rose 5 points on this news...
    http://www.mercurynews.com/mld/mercurynews/busine [...]
    ...and will now donate a substantial portion of that 401k to hedge fund inside traders today on this news...
    http://www.nytimes.com/2005/05/06/automobiles/06bond.html?hp&ex=1115438400&en=70bc6c052cad93
    0c&ei=5094&partner=homepage
    Wall street weasels need cash sheople! With kids in Ivy League schools, wives, ex-wives, and mistresses to support, these supporters of the culture of life,bushco inc. family values regime.... need your savings!
    You would just spend them on boring expenses in retirement. Ever soaring energy costs (gasoline and heating fuel), property taxes, medicine, food... a total waste, no fun at all.
    Let the "experts" manage your social security too you all...like they manage your 401ks.
    It's for your own good sheop...just say duuuuhhh..bya...
    The richer the weasels get, the more they respect and protect you all...honest..you can trust bushco inc.

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