Automotive Industry Credit Quality in Neutral Gear Apr 00

Standard & Poors, April 2000

Abstract
Rating outlooks among the world's automakers are broadly stable to negative. There is only one company for which a rating upgrade appears attainable within the next few years--Hyundai Motor Co., which, having weathered the severe downturn in the Korean auto market during 1997 and 1998, has since achieved significantly improved financial performance. The two largest industry players, General Motors Corp. (GM) and Ford Motor Co., have stable outlooks. In recent years, these two companies have had record earnings, reflecting buoyant industry sales in North America and, particularly, the growth in demand for high-margin sport utility vehicles and pickups-?segments in which they are well-positioned. Standard & Poor's does not assume that recent financial performance levels will be sustainable. Inevitably, North American...

Companies mentioned in this report are:
- Ford Motor Co.
- Motors Liquidation Co. (fka General Motors Corp.)
- Mitsubishi Corp.
- PACCAR Inc.
- AB Volvo
- Renault S.A.
- Nissan Motor Co. Ltd.
- Daimler AG
- Navistar International Corp.
- Honda Motor Co. Ltd.
- Toyota Motor Corp.
- Fiat SpA
- Peugeot S.A.
- Volkswagen AG
- BMW AG
- Tata Motors Ltd.
- Hyundai Motor Co.

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

- Ford Motor Co.
- Motors Liquidation Co. (fka General Motors Corp.)
- Mitsubishi Corp.
- PACCAR Inc.
- AB Volvo
- Renault S.A.
- Nissan Motor Co. Ltd.
- Daimler AG
- Navistar International Corp.
- Honda Motor Co. Ltd.
- Toyota Motor Corp.
- Fiat SpA
- Peugeot S.A.
- Volkswagen AG
- BMW AG
- Tata Motors Ltd.
- Hyundai Motor Co.

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