Peter Nesvold Quotations

Our change in rating is primarily a function of near-term valuation.

We continue to expect sentiment to worsen until GM/Delphi/UAW reach a three- way deal, which we believe would also greatly facilitate a GMAC sale.

To the extent we detect rapid awareness in the marketplace, we are cautiously optimistic on the company's 2006 prospects. However, if momentum builds more gradually, we believe sentiment is likely to erode further before it improves.

Arguably, Ford and GM are swapping incentives for higher ad spending and lower sticker prices. Longer term, we view this as a positive.

While fleet sales have been cushioning the blow of weak retail sales, particularly for Ford and Chrysler in February, the Big Three have been promising to de-emphasize this side of the business and headline numbers could suffer as a result.

In any event, we continue to believe that a voluntary near-term bankruptcy for GM/GMAC is of very low probability. We continue to believe that the biggest risk arguably would be a UAW strike at Delphi. ... Our sense currently is that a significant labor disruption at Delphi remains a remote likelihood.

Clearly, Greenbrier shares have had a great run year-to-date, up 39% versus the rail equipment group. We believe the best is yet to come.

The GMT-900 version of the Chevy Tahoe is officially for sale now, but it is difficult to gauge how strong a start the vehicle is having. Nonetheless, early results will be highly scrutinized.