Ford's Worst Quarter Ever

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July 28, 2008
Autos Insider Newsletter Your weekly insight into the world of autos

NEWS  THIS WEEK'S TOP STORY Ford's Worst Quarter Ever   MORE TOP STORIES Daimler Shares Fall on Profit Warning Sales of Mercedes cars are up in the U.S., but investors are alarmed by Daimler's weak showing in Spain, Italy, and Britain EUROPE Volkswagen Earnings Defy Industry Gloom Despite auto industry pessimism, European small-car makers have reported solid earnings. But VW's future may depend on the resilience of emerging markets NEWS & FEATURES The Diesels Are Coming. But Will Anyone Want Them? New technology has made diesels cleaner and greener than ever, but high pump prices may scare off potential customers NEWS & FEATURES The New Rolls Coupé Drives as Good as It Looks Few people in the world can afford the new $400,000 Rolls-Royce Phantom Coupé, but driving one makes you understand why it's worth the price REVIEWS Dodge Caliber SRT-4 Hatchbacks are unpopular in the U.S. and muscle cars are struggling. Too bad. Dodge's Caliber SRT-4 is a lot of fun Hyundai Happily Downshifts Back to Small Cars tk NEWS & FEATURES • From Sports Car Market Hot-Rod Lagonda The 1976 Lagonda V8 Series 1 Saloon, which was one of the most expensive cars of its day, was exclusive even by Aston Martin standards NEWS & FEATURES • From Gizmag.com The British Motor Show Is Coming! The British Motor Show Is Coming! Debuts aplenty, a swag of supercars, and a focus on greener, leaner motoring mark the 2008 British Motor Show Advertising | Special Sections | MarketPlace | Knowledge Centers Terms of Use | Privacy Notice | Ethics Code | Contact Us Copyright 2000- 2008 by The McGraw-Hill Companies Inc. All rights reserved. This newsletter is a FREE service provided by BusinessWeek.com. To sign up for other newsletters, cancel delivery, change delivery options or change your e-mail address, please go to our Newsletter Preferences page. If you need other assistance, please contact Customer Service or contact: Wanda Cooper BusinessWeek Customer Rights Communications Data Services 1995 G Avenue Red Oak, IA 51566 Phone: 1-800-635-1200 View our corporate privacy policy here. To learn more about how BusinessWeek.com applies this policy, you can contact our Marketing Department. Copyright 2008, by The McGraw-Hill Companies Inc. All rights reserved. Terms of Use | Privacy Notice

Inside: This Week in Autos Worst. Quarter. Ever. That was the news this week when Ford reported a second quarter loss of $8.7 billion. Amidst the bloodshed, Ford CEO Mulally drove home the point that the company was (finally) shifting tactics and (finally) bringing over some of its small, fuel-efficient cars that have been so popular in Europe. The main objections to this move in the past had been the cost of retooling factories and the financial hit resulting in selling fewer of their more profitable SUVs and pickups. But now it is clear the company is fighting for its life and must do everything it can to survive. Mulally wouldn't commit on when the company would return to profitability but hopefully this is (finally) the right approach. In Germany, the news was mixed: Daimler's issued a profit warning as strong sales in the U.S. were offset by unexpected weakness in Europe, and VW reported a surprising 22% increase in second-quarter operating profit, to $3.35 billion. Elsewhere, we looked at the new generation of diesels coming to the U.S., admired the Rolls-Royce Phantom coupe and reviewed the Dodge Caliber SRT-4. Charles DuBow E-MAIL A FRIEND  |  GET RSS  |  NEWSLETTERS Advertisement   What's Your Problem? We all have workplace problems. Share with us, and your fellow readers, the hurdles you've faced—and how you've tried to clear them     IN YOUR FACE: THE FROZEN ECONOMY Reader Mike Bendzela Writes: "Remember the following as we slouch toward depression: In 1930, the U.S. still had 200 billion barrels of oil under its landscape. Today, that has dwindled to 20 billion." Tell Us: What Could Help Thaw the U.S. Economy? >     FEATURED SLIDE SHOWS > > The Auto Industry's Worst Blunders Topless Models: 13 Bargain Convertibles   BLOGAUTO BEAT >> J.D. Power and Associates (owned by BusinessWeek parent McGraw-Hill) forecasts that auto sales will come in this year at 14.2 million units, down from 16.1 million last year and more than 700,000 units below what the firm projected last January. — David Kiley POST YOUR OWN COMMENTS Visit Our Other Blogs Auto Beat Bangalore Tigers Blogspotting Brand New Day Byte of the Apple Economics Unbound European Insight Fine On Media Games, Inc. GreenBiz Hot Property Investing Insights Management IQ New Technology in Asia NEXT: Innovation Tools & Trends NussbaumOnDesign Tech Beat Working Parents   FEATURED AUTO REVIEWS > > Mazda5: Minivan with Major Sales Dodge Caliber SRT-4   Advertisement   CLASSIC CARS > > Ferrari's Winning Boxer The highly successful 1982 Ferrari 512 BBi "Boxer" was hand-crafted car with mid-engined performance and aesthetic appeal     HYBRIDS > > Zero Emission VW VW's space up! blue fuel cell concept combines an electric motor, lithium-ion batteries and a solar panel to get a range of 65 miles