On the brink
The autos sector has had a rough ride over the past year or so, with the Big Three variously suffering from sizeable debt piles, crippling pension liabilities and overcapacity. But as Saskia Scholtes discovers, the asset-backed securities market may kick-start their fortunes
Fasten your seatbelts: it looks to be a bumpy year ahead for the automotive industry. Overcapacity, falling sales projections, massive pension deficits and the slow progress of restructuring efforts have brought about ratings downgrades for some of the biggest names in the sector, and have fuelled speculation that further downgrades are to come. A recent article in the Financial Times even suggested that one of the big three US car manufacturers risked being downgraded to junk.
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