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MR. DUD, BOYCE, LA
If you want your money to be safe, stick to investment grade bonds.
The following is from Fitch, an outfit that rates companies' credit. The date is Mar 3 2006
NEW YORK, - Fitch Ratings downgraded General Motors Corp. ratings deeper into junk status on Wednesday.
"Fitch cut GM's senior debt and issuer default ratings to "B," five notches below investment grade, from "B-plus."
The fact is, GM's credit rating started to slide in 2001, and by 2006 was "five notches below investment grade" by March 2003. In other words, GM Bonds had been extremely for YEARS by the time they went under. Wagoner should have done a proper bankruptcy, but he didn't have the courage.
Ford Fusion
I am confused. When this forum discusses a made in the USA transplant like the Accord or Camry, they are no good because "the profits go back to Japan." On the other hand, people here are complaining about the Ford Fusion. Why? Profits from Fusion sales stay right here in the good ol' USA, wherever the car is assembled. So that should be OK, right?
Junk Bonds
This is a cautionary tale for those who invest in bonds. High interest bonds are high interest because of the underlying risk, as those GM bondholders found out. If you are risk averse, or you are investing money you cannot afford to lose, stay with investment grade bonds. If a deal seems too good to be true, it is.
GM Bonds
MR. DUD
GM's credit rating was in the junk category for a LONG TIME before they went bankrupt. That's why the interest rates are so high. Some of the bonds may not have been junk, but most of them LOOK like junk with those high interest rates. GM was paying a fortune in interest. No wonder they went bankrupt.
GM Bonds
Many of those bonds look like junk bonds to me. People who bought junk bonds might have had a clue from the name about the quality of the bonds, eh? Nonetheless, bond holders should have been paid first from the bankruptcy proceeds, even it it was only pennies on the dollar.
GM May REPAY
Real Lions Fan
Do I detect the slightest note of sarcasm in your post?
Michigan Roads in a Fix
Otto Kritic
I agree. If you are driving on those upper midwest roads in Michigan, Ohio, Illiniois, etc. Det3 vehicles are the way to go. Even the sedans are built for those roads, with their marshmallow suspensions and long suspension travel. Those same characteristics render Det3 vehicles "sub-optimal" for my part of the country, where smooth, narrow, twisty roads are the norm. For example, take my Buick...please.
Cool Wagons
I don't know how cool it was, but my family had a white 1961 Chevrolet wagon. It was NOT top of the line. But it had a well behind the back seat that was useful for sneaking people into the drive-in movie. We used to strap a toboggan on top in the winter. Warsaw Park had iced toboggan runs and a warm building where you could get hot chocolate. Lots of fun.
The Chrysler Plan
fhs1
Very interesting speculation. Maybe fuel efficiency IS the niche Chrysler will pursue with the Fiat deal. If so, this just might work for them. They certainly beat GM and Ford to the punch on Minivans.
Thanks for your insightful comments.
CyberSurvey: Chrysler's goals
Pradeep
Chasing market share has always been a mistake for Chrysler. Better to be a profitable niche player than a bankrupt full-line manufacturer. The trouble with niches, though, is that your competitors move quickly to fill them.
Infiniti G35 coupe
I had a chance to drive an Infiniti G35 coupe over the weekend. Nice car. Beautiful lines, and a with 6 speed manual it was very responsive. Engine has a nice growl, too. Can't quite afford it right now. Maybe next year...
Volt Exec leaves
Well "Another One Bites the Dust". There are always individuals in any organization who are like the cnary in the coal mine. They sense bad times coming sooner than the rest of us, and get out before the waste matter hits the rotating air device. So the question is, Watt's going on in the Volt project, eh?
Give someone else a shot at the
I have seen your future. It's not pretty. I have lived in a couple of places after large employers scaled back or left town. What develops is a two tiered population. The old-timers, either retired from or still working at the big company, have enough money and are comfortable. Younger folks are stuck in low-paying jobs. A lot of resentment builds up between the two groups. If you made a documentary about this it might be called "When Boom towns go Bust"
Costs
tlv125
Glad to hear that Mulally is making a difference. I hope Ford is wildly successful under his leadership. Thanks again for all the insight you provide.
Costs
tlv125
Thank you. Your facts are enlightening and refreshing to see on this overheated discussion board. Let me ask a question. If the UAW workers got together and decided they would work for free "to help out their companies", could Ford and the Bankrupt 2 make money on cars then? I have the sneaking suspicion that the answer is no.
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