As of 1:15 pm Eastern time today S&P has reduced General Motors and Ford Motor Company bonds to junk status.

http://www.marketwatch.com/news/story.asp?guid=%7BC3D6403C%2D4546%2D4050%2DABD5%2D 2AEC0A628B1D%7D&siteid=mktw&dist=

SAN FRANCISCO (MarketWatch) - Ratings concern Standard & Poor's, in a widely expected move, cut its credit rating on General Motors Corp. to junk status on Thursday, a day after the auto maker's shares turned in a historic rally.

In early afternoon trade, GM's stock was down 4.1% to $31.44 after jumping 18% Wednesday in reaction to Kirk Kerkorian's bid to double his stake in GM.

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What do you think this means for GM and Saab?

I'd say it means very little at this time ... during the prolonged market downturn of the last several years (yes ... it bumped up some ...) several large corporations have seen their stocks reduced to junk and continued to operate viably & profitably. (Corning is a great example) It really just says that the stock market finally went, "Wow. Things are tough in the automotive market; we don't want to overvalue your stock." That's not to say there won't be a negative impact if things continue to worsen, but for now, I wouldn't think too much of it.

Well the problem is that borrowing is a HUGE part of GM. General Motors is the largest issuer of corporate bonds in the United States. A drop in bond rating means that GM now will have to pay more to borrow. And, since the financing arm, GMAC, is the moneymaker, this could be very bad in my own opinion. GM currently has $300 billion in debts and I believe 1/10 of that in cash.

i can see it meaning less new development
for saab, more platform/parts sharing, and
wider use of cheap (as in, "quality") materials.

also, being in "junk-bond purgatory" should
be added grounds for gm to rethink its policy
of defiling saabs with its badge. if gm keeps
saying that saab is its "premium european
brand," it needs to start treating it as such.

GM knows that reducing development budget would be digging own grave so they avoid doing that.
UAW contract ends 2007 and GM just have to hold on until that and then put up a hellish tussle.

But but, GM might want to do something "show off" to convince analyst that they are gonna make it.

If American culture is strange, this might be funny to watch sometimes:
http://gmtv.feedroom.com/

Maybe they gonna hire ex Iraq information minister to handle talking.
"SUV sales are not falling, I repeat, SUV sales are not falling...."

Maybe they gonna hire ex Iraq information minister to handle talking.
"SUV sales are not falling, I repeat, SUV sales are not falling...."

:lol::cheesy::roll::)
LOL. That's pretty funny.