I'm Pissed Off: S&P Lowers GM and Ford Credit Ratings, Just When They Need To Borrow..Sounds Like Profiteering To Me

I'm Angry and you should be too...In what we can only think of as a "strike while the iron is hot" profit scheme for the world's banks, Standard & Poor's reduced its credit ratings for General Motors Corp.and Ford Motor Co. by as much as two notches.

S&P's rationale is that the economic slowdown comes as pressure is building from foreign rivals, so...when was the last time Ford and GM did not repay their loans or other financial obligations? I always thought that interest rates are tied to risk...come on now.

The cost of money for these companies...the fuel for these two engines of our economy, will rise and eventualy trickel up to the consumer. This move benefits only the banks and commercial lenders, not our country.

The downgrades are likely to make it more expensive for the automakers to borrow money, an added problem that gets in the way of their attempt to jump start their business and our economy.

The Wall Street Journal called this "a blow to their giant finance units, which rely heavily on commercial paper to fund loans to car buyers."

"As a result", the WSJ went on to say, "GM and Ford now will find the bill rising for the zero-interest financing deals they rolled out for consumers last month to jump-start sales after the terrorist attacks."

Both automakers were reported as saying that they were disappointed by the downgrades and insisted they still have substantial financial flexibility. We are disappointed as well.

We were taught that "you don't kick a man (or a company) while he's down"...S&P didn't your parents teach you anything?

Bob Gordon President and Co-publisher as well as a Co-Founder. The Auto Channel

Let me hear what you think?

bgordon@theautochannel.com,

Here is what Gordon Wangers of Automotive Marketing Consultants thinks

Thanks for your editorial, we agree that our industry often does not get its due in the public arena. I am not often accused of being a GM booster, but in this case I think Rick Wagoner should be hailed as a national hero for doing the zero percent deal -- it is actually better for the country than it is for GM.

He kept the plants open, people working, and tremendously helped all the downline industries that benefit from car purchases.

S&P's move is flat "un-American."

Gordon Wangers

President

Automotive Marketing Consultants, Inc. (AMCI)