When the second and third biggest corporate borrower in the world goes to junk, it is not just they that have a problem, we all have a problem

If its bonds are junk, how are the cars?

   

As a side note to this, WA state has just declared new emissions regulations for new cars sold in 2009 and beyond.

The problem is that in order to develop new hybrid or other alternate energy cars, you need capital. To have capital, you need a good credit rating to attract capital.

Junk status is going to be a big hit given the amount of R&D and innovation that will be required over the next several years.

I don't think Toyota has the same hurdle.

m

   

Would you say then that given the facts and views presented in the article, as well as the greater difficulty (as Mukluk stated) with which Ford and GM will have in funding competitive fuel efficient cars (hopefully not unlike the have-your-cake-and-eat-it-too Ford Escape Hybrid), that the SUV "bubble" has most definitely popped?

Assuming there was a "bubble" to begin with -- hype is such a mainstay in our culture it's often hard to distinguish fact from advertising.

   

Here is an article on Toyota and their "this is not true...oh wait a second, maybe it is" decision on sharing hybrid technology with GM. The hope is that this would help them out.

I really don't think the SUV thing is a bubble, maybe the name is - but not the vehicle. The bottom line is that you can't fit two kids, the Graco systems, suitcases, packandplays, gifts, etc for the trip home at Christmas in the back of your hybrid neon. Same goes for two kids with hockey equipment (one a goalie) and a couple of their friends with their gear too - in the back of a prius.

SUVs are the stylish minivan for a lot of people. It will either be SUV's, pickups or minivans for most families. Which is why I disagree with taxing them at any different rate than regular vehicles.

m