Re: And NOW, the Big 3 are doing what Packard couldn't do...

Posted by Packard53 On 2009/4/8 18:59:08

Gerardo: Just to let you know that a good S&P are badly wanted and sought by companies like Fiat no matter what the economic situation is. If you think other wise then you are dreaming.

The only thing that a junk rating may do for Fiat as stated may well help them out concerning Chrysler debt. If Fiat has problems in 2009 and 2010 in paying debts coming due as S&P stated that it may have trouble in doing so, they are in-trouble plain and simple. Having a poor S&P rating doesn't help them out with the other big problems that Fiat faces.

It seems that many governments in the EU are giving money and support to European car makers thought the back door.
Proof of that is in your post on scrapping subsidies being provided by EU governments. Without these subsidies I just wonder how flat the car sales would be in Europe.

In an interview I read that Marchionne did a short time ago, he gave his views on the auto industry. He stated that in a couple of years there would only six maker around the world. It was also stated by him that for a car manufacture to survive it would have to have annual production of between 5.5 and 6 million vehicles. Fiat and Chryslers production at this time only totals 4.5 million units a year. It kind of sounds like to me that if Fiat is unable to join forces with Chrysler they may not be around in a couple of years. Even with a partnership with Chrysler they still have big mountain to climb.

I got to look at a new Audi the other day and to me in real life the styling is very bland to me. The front end treatment looks like a dying fish with its mouth open sucking for air. I would certainly purchase an Audi over anything that is offered in the Fiat auto lineup.

Fiat SPA doesn't have a four door sedan in its line up that offers the performance of the CTS-V. I happen to like the styling of the CTS.

John F. Shireman