U.S. buyers more open to foreign cars, survey says [View All]

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Tuesday, December 13, 2005

Just as domestic automakers are struggling to cut costs and increase their withering share of the U.S. market, an increasing number of consumers no longer care about "Buying American," according to a new study...

"This is a big social change in a short period of time," he said...

The study comes as Americans are buying a record number of vehicles built by foreign automakers...

Many of those vehicles are built in the United States, however. Between 1982 and 2003, foreign automakers have invested almost $28 billion in automotive plants in the United States, employing about 63,000 workers, according to a study by the Center for Automotive Research in Ann Arbor, Mich.



Agency downgrades GM's credit rating

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Tuesday, December 13, 2005

New York- Standard & Poor's cut its ratings on General Motors Corp. deeper into junk status on Monday, citing increased skepticism about the troubled automaker's ability to revitalize North American operations.

The rating agency cut GM's corporate credit rating by two notches to "B" from "BB-minus." S&P removed the company from CreditWatch, but maintained a negative outlook.

General Motors' debt is rated noninvestment grade, or junk, by all three major credit rating agencies. The company has been contending with soaring employee and commodity costs, as well as a decline in sales because of higher gasoline prices.

Moody's Investors Service and Fitch Ratings rate GM's debt at "B1" and "B-plus." Companies whose debt is rated at high-yield status often face higher borrowing costs...