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DCR Provides Credit Outlook for the Big Three Automakers

11 February 1999

DCR Provides Credit Outlook for the Big Three Automakers

    CHICAGO, Feb. 10 -- The positive and negative factors that
are shaping the credit quality outlook for the U.S. Big Three automakers are
outlined in a newly published Duff & Phelps Credit Rating Co. (DCR) report.
    "As a group, the Big Three automakers are adopting a common financial
strategy to retain much larger cash reserves as protection against a cyclical
market downturn and similar operating strategies, including a major drive to
improve cost and investment productivity," said Marvin Behm, a DCR vice
president.  "On the other hand, the automakers, and the industry in general,
are facing a considerable amount of excess production capacity worldwide,
which limits how fast the global industry as a group can improve its ratings."
    The Special Report provides an update of the credit outlook for Ford,
General Motors, and DaimlerChrysler, a comparison of each companies' profit
and costs, the effect that major business initiatives are having and the
impact of recent market events.
    DCR's Credit Outlook for the Big Three Automakers is available on DCR's
web site at http://www.dcrco.com under Industrials\Latest Research or by contacting
DCR's Hotline at 312-368-3198 or hotline@dcrco.com.