In the next 18 months -- leading up to crucial labor negotiations -- both companies must demonstrate progress in turning around their North American operations to significantly reverse recent negative financial trends.

These turnarounds will be difficult and time is short. Both Ford and GM have already begun broad multiyear restructurings to cut costs. Those efforts will be critical in further evaluating both credits.

It's definitely a broadening of the wholesale market, and that's a positive because that market is a relatively new market in the last few years. It's been an important market since their downgrade.

At a minimum, we do not see any dramatic reversals for North American automakers.

They're continuing to make progress. So far we're not predicting a deal won't get done.

We see few reasons to be optimistic about 2006.

We always want to have the right rating on a company. There's nothing magical about the timing.

The progress is such that we can have a provisional separation.

Time is short to remedy these issues. The next 18 months is very important. It's vital both companies demonstrate progress in turning around their North American operations.

We have a negative outlook on the company. We don't think anything will happen in 2006 to cause the rating to go up.