GM Staggers Under Losses

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August 05, 2008
Autos Insider Newsletter Your weekly insight into the world of autos

NEWS  THIS WEEK'S TOP STORY GM Staggers Under Losses   MORE TOP STORIES AUTOS Chrysler Posts a Profit, of Sorts Chrysler announces a surprise $1.1 billion in EBITDA for the first half of 2008, but the automaker is still bleeding red ink NEWS & FEATURES July Autos Sales Highlight Small Cars' Success While nearly every automaker was punished last month in North America, small, fuel-efficient cars offer a lifeline Ford: A Toyota Vet to the Rescue Jim Farley is shaking up a calcified strategy and marketing culture, including giving dealers a real voice. Will it be enough? NEWS & FEATURES SUVs and Trucks Plunge in Trade-In Value The market for new SUVs and trucks is suffering. Just imagine how bad it is for used SUVs and trucks INDIA The Nano: Tata's Costly Promise Rising expenses are squeezing the profitability of the Indian automaker's supercheap car, whose price was originally set at $2,500 REVIEWS The Mini Cooper Clubman: Fast, Fun, and Hard-to-Find Demand is so great for the zippy, fuel-efficient Clubman that most buyers won't get one until the fall—but it's worth the wait NEWS & FEATURES • From Gizmag.com Honda Goes Green and Sporty At the British Motor Show, Honda unveils its low-emission roadster concept, the OSM NEWS & FEATURES • From Sports Car Market The First Fiberglass Ferrari The aerodynamic 1971 512 M was the fastest car Ferrari had ever built, capable of speeds in excess of 235 mph 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 No one expected GM to announce a Q2 profit but still many industry-watchers were stunned by the staggering $15.5 billion loss the company reported on Aug.1. As Detroit bureau chief David Welch wrote, the loss was due primarily to one-time charges, write-downs and the erosion in demand for its once-popular, and profitable, SUVs and pickups. The same day, July auto sales came out and once again they read like something out of the Book of Job, with nearly every automaker declaring a steep drop. But there was one big surprise: Chrysler, which has been the whipping boy of the industry for years, announced a surprise profit. This caught many people flat-footed but on closer inspection it is clear that the profits aren't so cut-and-dried. As Welch explains, the $1.1 billion profit they reported was in EBIDTA and the company is still bleeding red ink. Elsewhere this week we looked at Ford's new marketing honcho, Jim Farley, and his efforts to turn the company around, shuddered as SUVs and trucks, both new and used, plunged in value, saw auto leasing disappear from dealerships and test drove the Mini Cooper Clubman. 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 U.S. ECONOMY Reader Cody Writes: "It can't stay like this forever....can it? I'm buying gold bricks and burying them in my back yard. When currency goes south, I'll dig those out and start to barter!" Tell Us: Are Your Assets Shivering? >     FEATURED SLIDE SHOWS > > The Auto Industry's Worst Blunders Topless Models: 13 Bargain Convertibles   BLOGAUTO BEAT >> GM, Ford and Chrysler all had their credit ratings lowered a step further into junk status today by Standard & Poor's (which, like BusinessWeek, is owned by McGraw-Hill). The chief concern of the rating agency is the cash burn of all three companies due to the worsening economy, high fuel prices and consumers leaving pickups and SUVs. In fact, the ratings agency?s bombshell was that while U.S. light vehicles should run at an annualized rate of 14 million for the next 18 months, oil prices rising to $200 a barrel could drive auto sales as low as 11.7 million units next year. S&&P pegged the chances of that at 20%. — 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 > > The Mini Cooper Clubman: Fast, Fun and Hard to Find Subaru Forester: Big, Rugged, and Economical   Advertisement   CLASSIC CARS > > The First Fiberglass Ferrari The aerodynamic 1971 512 M was the fastest car Ferrari had ever built, capable of speeds in excess of 235 mph     HYBRIDS > > Honda Goes Green and Sporty At the British Motor Show, Honda unveils its low-emission roadster concept, the OSM