...The ratings on Ford Motor Co. and related entities reflect the possibility that the multiple problems the company faces in stemming cash outflows could overwhelm its liquidity during 2009 without federal loans or support. These problems will include very low demand in the U.S., and now Europe, for light vehicles and the dramatic consumer shift away from large pickup trucks and SUVs in the U.S., which accelerated earlier in 2008. Items that Ford can address over time--such as its overcapacity, labor costs, and product lineup--will not, in Standard & Poor's Ratings Services' view, produce any meaningful reduction in its cash use in the near term. We expect U.S. light-vehicle sales to decline to a 25-year low of about 11.1 million vehicles in 2009, down from about 13.1 million in 2008, as the economy remains weak and housing prices and consumers' access to credit remain under pressure. The outlook for other major auto markets, including Europe, has suddenly turned much bleaker in the past...
