The ratings on General Motors Acceptance Corp. (GMAC) reflect those of its parent, General Motors Corp. (GM; see the related analysis on GM published on July 24, 2003). GM's ratings reflect average overall business position as the world's largest automaker, and a financial profile dominated by its burdensome benefits obligations. In its core North American operations, GM has made some progress in enhancing its competitiveness. The company's cost performance has improved as a result of ongoing efforts to contain material costs, capitalize on the use of common components among vehicles, enhance labor productivity, and reduce employment levels. Although GM's U.S. market share seemingly had stabilized during 2001 and 2002--with its position in the highest-margin light-truck segments (sport utility vehicles [SUVs]
