Tech & Biz

GM, Ford Announce Huge 3rd Quarter Losses

by Jordan Yerman | November 7, 2008 at 11:41 am

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Detroit auto giants General Motors (GM) and Ford have announced larger-than-expected losses today as the lag in car sales continues. GM has put plans to acquire Chrysler on the back burner as it focuses upon more pressing issues.

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.

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SOLARLIFE

at 13:27 on November 7th, 2008

the economy engine, the car industry of the Henry Ford 20th century has gone, we have indeed to look for a new motor and not refinance antiquated horse carriage manufacturers

Fairbanks

at 13:30 on November 7th, 2008

Whichever car companies remain when car sales begin to increase again will do well. Their product lines might include several electric motor vehicles.

MurrayRothbard

at 08:41 on November 10th, 2008

“Either the federal government provides money for a bailout and lets the industry retool, restructure, and move ahead, or the industry dies,” Dennis Virag, president of Automotive Consulting Group in Ann Arbor, told Bloomberg Television.