Edmunds' AutoObserver Blog

Nov 7, 2008 - News From AutoObserver.com

Hi,

Here are some highlights from Edmunds’ AutoObserver.com this week. As always, there is more available directly on www.autoobserver.com:   

Ford Loses $129 Million in Third Quarter; Nearly $3 Billion Before Special Charges- Ford Motor Co. reported Friday a net loss in the third quarter of $129 million, compared with a net loss of $380 million in the third quarter of 2007. As expected, the loss prompted Ford to announce more cost cutting measures. They include: an additional 10-percent reduction in North American salaried ranks, a freeze on salaried pay increases and bonuses and an elimination of company matching funds to savings plans. For more information on Ford’s situation, visit http://www.autoobserver.com/2008/11/ford-loses-129-million-in-third-quarter-nearly-3-billion-before-special-charges.html

Want the $25 Billion? Here are the Hoops to Jump Through - The U.S. Department of Energy Thursday issued the draft rules for automakers seeking the long-ballyhooed $25 billion in loans Congress recently approved for automakers (and suppliers) to retool factories to produce a new generation of more fuel-efficient vehicles. Sure, strings had to be attached, or the automakers would burn through the dough like sailors on shore leave. But saying there are hoops to jump through in this “interim final rule” is an understatement. For more information on the requirements, visit http://www.autoobserver.com/2008/11/want-the-25-billion-here-are-the-hoops-to-jump-through.html

Toyota: Biggest Profit Drop in a Decade - You know things are bad when seemingly invincible Toyota is struggling, and it is. Calling the current economic environment "unprecedented," Toyota reported Thursday its quarterly profit plunged 69 percent, mainly due to slumping vehicle sales in the U.S. and Europe, where Toyota lost money, as well as depreciation of the yen versus the U.S. dollar. Toyota's earnings drop was far more dramatic than analysts had anticipated and prompted Toyota executives to severely downgrade its profit forecast for the year. For more information on Toyota’s sales slump, visit http://www.autoobserver.com/2008/11/toyota-biggest-profit-drop-in-a-decade.html

Cash Crunch Simultaneously Prods, Prevents Castoff of Swedish Automakers- With operating revenue becoming an increasingly scarce commodity in Detroit, General Motors Corp.'s and Ford Motor Co.'s luxury of maintaining their premium-brand but low-performing Swedish automaking units is likely to earn deeper scrutiny in the coming months. Sources at GM and Ford currently offer no clue as to whether Saab or Volvo is actively being shopped, but the option must be on the table. For more information on this story, visit http://www.autoobserver.com/2008/11/cash-crunch-simultaneously-prods-prevents-castoff-of-swedish-automakers.html

Feel free to share this message with others who want to stay up on auto industry news. And, please send your comments and questions to autoobserver@edmunds.com.     

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