DEARBORN, Mich., June 23 (UPI) -- Default insurance now costs Ford Motor Co. more than it does General Motors Corp., a reversal of the perceived health of the rival U.S. automakers.
Data and valuation group Markit said the annual cost of five-year protection against a Ford default climbed Wednesday to 9.39 percent, while the same protection for GM stayed at 9.26 percent, the Financial Times said Friday.
As recently as January GM's default protection rate in the credit default swap market had jumped to more than 13 percent. In the past six months that market has been charging Ford a stable 8 percent to 10 percent.
The inversion of Ford's and GM's default insurance rates reflects growing market skepticism about the viability of Ford's "Way Forward plan," which aims to return its North American operations to profit by 2008.
Analysts doubt Ford's ability to staunch recent losses in market share and have questioned the quality of management at the family-run carmaker.
