Big Auto Makers See Profits Fall

A clutch of Japanese and European car makers reported dismal earnings as the global economic crisis continued to hammer auto industry's sales.

The buzz around the North American International Auto Show in Detroit this week hit a positive pitch not heard since the global economic crisis gutted the industry a few years back. The Financial Post Scott Deveau was in Detroit for the event talking to the movers and shakers of the global vehicle industry — from Chrysler’s charismatic Sergio Marchionne on the return of Alfa Romeo 2 to North America to Detroit’s Big Three lamenting the high cost of production in Canada.

LONDON — Europe’s enduring economic slump has left its auto industry hurting with sagging sales forcing prices down and inventory up, even after thousands of factory jobs have been cut.   Mid-level manufacturers such as Renault and Fiat are struggling, with PSA Peugeot Citroën in February reporting a record 2012 loss of $6.5 billion. Higher-end companies are, however, faring somewhat better.  

Some of India's auto giants reported on Tuesday a modest increase and some a drop in sales of new cars for the month of December, despite recent festive discounts and new models launched. Tata Motors, India's leading vehicle maker, showed a 51 percent year-on-year drop in sales at 14,185 units, compared to 28,916 the same time last year.

Chinese auto makers with strong ties to big-name foreign car brands such as GM and VW reported strong first-half profits, illustrating the benefits of such partnerships as the country's market gains slow.

US and other auto manufacturers banking on increased car sales in China for 2012 have three reasons to be concerned. Blistering growth in Chinese auto sales is expected to plunge China is taking efforts to dampen foreign investment in autos Trade wars The Wall Street Journal reports

By Ry Frank:June was a good month for the three leaders in the motor industry, namely Ford (F), General Motors (GM) and Chrysler, all of which experienced a significant increase in sales over this time period. The good luck is not limited to the big names.