"NEW YORK (Reuters) - In a one-two punch for financial markets, Standard & Poor's cut General Motors Corp.'s (GM.N: Quote, Profile, Research) and Ford Motor Co.'s (F.N: Quote, Profile, Research) debt ratings to junk status on Thursday, citing brutal global competition and flagging sales of the automakers' most profitable vehicles.
The downgrades, which total about $290 billion and are the largest cuts to junk in a single day, jolted financial markets. Stocks and the dollar weakened. Safe-haven Treasury debt prices rose. The broad junk bond market, which by some measures will expand about 15 percent in short order, dropped."
http://today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2005-05-05T184303Z_01_N
05531564_RTRIDST_0_BUSINESS-AUTOS-GM-JUNK-DC.XML
Maybe if we push a mandatory increase in vehicle mileage as the "Defense of Carriage Act" it would have a bit more traction. One thing is clear: Detroit has had thirty years to develop efficient high-mileage vehicles that Americans want to buy and it hasn't managed to do so voluntarily.
Other reports have aging merger & acquisition shark Kirk Kerkorian making a move on GM for a piece of GMAC, the only portion of the corporation making a profit.
With Barbara Boxer pledging 10K for Debbie Stabenow's upcoming Michigan Senate Race, one might even dare to hope that this provides an opportunity for Stabenow to further develop credibility with both green factions (environmental and economic development) by leading the fight to bring Detroit back to solvency through mandated production of affordable high-mileage, low-emissions vehicles.