Car company's credit crunch

From The Daily Edition: Jun. 9, 2006 - The CarConnection.com - "Fitch Drops Ford Two Notches. Credit rating service Fitch Ratings took Ford’s standing down two more notches on Thursday, just a day after Moody’s warned that it might do the same to the third-largest automaker’s rating. Fitch now ranks Ford’s debt at B-plus, down from BB, with a negative outlook. The move is based on expected drops in revenue at the company through the rest of 2006, the ratings agency said in a release. Standard & Poor's has also said it might lower Ford’s ratings based on the continuing problems in the company’s North American operations. Rising fuel prices are cited too, as is the concurrent slump in Ford’s SUV sales."

Maybe the cars they sell are (a) too big and (b) not marketed well enough? Perhaps the company is not nimble, like Toyota? Perhaps it's waited too long to revamp its lineup in favour of niche markets, smaller engines, hybrid powerplants.. maybe all of the above? GM's not that much better and both companies have been divesting assets in the last few years.