Tuesday, May 17, 2005
Junkers - by Lezah
Standard & Poor have dropped the credit rating of both Ford and GM shares to junk bond status recently. This is in response to the recent and sharp rise in gas prices around the world. Both of the domestic giants have been fighting a losing battle recently in the car market, as imports have been dominating that field lately. They have been keeping their heads above water purely through their strong hold on their truck and SUV lines; however, rising gas prices have pundits foreseeing a sharp decrease in sales in this sector.