GM, Ford Announce Huge 3rd Quarter Losses

Both companies said they would take aggressive steps to cut their costs even further. The two largest U.S. automakers reported third-quarter results after the world's No. 1 automaker, Toyota Motor Corp of Japan, slashed its profit forecast for the year.

Even before the announcements on Friday the beleaguered carmakers were in desperate shape. High fuel costs, the effects of the credit crisis and looming recession contributed to making October the worst month for new-car sales in 25 years. Sales at GM and Chrysler have fallen by 18% and 25% respectively this year and both companies will run out of cash some time next year if they continue to use it up at the current rate. The massive losses GM and Ford reported on Friday show that the prospects are bleak for America's carmakers.