S&P: Automakers pressured

Standard & Poor's said in a report that deteriorating U.S. industry conditions and worldwide soaring gasoline prices are increasingly putting pressure on global automakers.

In June, S&P said it placed on CreditWatch with negative implications its ratings on the three U.S. automakers, General Motors Corp., Ford Motor Co. and Chrysler LLC (all rated B/Watch negative) and on the finance units Ford Motor Credit Co. (B/Watch negative/B-3) and DaimlerChrysler Financial Services Americas LLC (B/Watch negative), as well as GM's 49%-owned finance affiliate GMAC LLC (B/Watch negative/C).

"The erosion of demand for higher-margin SUVs and pickups is particularly troubling," said S&P credit analyst Maria Bissinger.

"Although these segments have been weak for some time, the exodus of demand that began in April, caused by escalating gas prices and consumer preferences for smaller vehicles, is gathering speed."

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