The ratings on General Motors Acceptance Corp. (GMAC), General Motors Corp. (GM), and all related entities reflect the daunting challenges GM faces in addressing its competitive disadvantages. Still, GM should not have any difficulty accommodating near-term cash requirements. The ratings on GMAC are the same as GM's. Consolidated balance sheet debt outstanding totaled $283.6 billion at June 30, 2005. Of greatest immediate concern is that GM's SUV business will no longer be as profitable as it has been in recent years. GM's financial performance has been heavily dependent on the profit contribution of its SUVs. Recently, though, sales of GM's midsize and large SUVs have plummeted, despite huge inventory reduction initiatives begun in June and to continue through at least
