Nightmarish profit warnings have Detroit reliving bad old days
It felt so 2009.
First General Motors and Fiat Chrysler reported weak earnings, with both reining in profit forecasts for the year. That sparked sharp sell-offs of their stocks.
Then it really got ugly. Ford Motor Co. took the stage and projected $11 billion in charges linked to a restructuring plan that will take as long as five years to play out. The already-struggling company that had touted plans to cut $25.5 billion in costs in the coming years left analysts wanting more detail and subjecting Chief Executive Officer Jim Hackett to harsh questioning.
Not since the financial crisis and Carpocalypse have Detroit automakers had so much bad news in one day. To be clear, all of the companies are solidly profitable and nowhere near the edge of survival like they were in 2009. They also aren’t alone: Daimler AG had already cut its profit outlook, citing the trade climate, and Hyundai Motor Co. missed second-quarter estimates.
But what made the headlines all the more confounding was that the downbeat results and outlook came at a time when the U.S. auto market is solid, the economy is humming and China is buying more cars every month.
“To have a quarter like this is striking,” said James Albertine, an auto equities analyst with Consumer Edge Research. “Every time they turn over a rock, they find more problems.”
GM’s profit issues were mostly caused by external forces, namely President Donald Trump’s steel and aluminum tariffs and depressed currencies in Argentina and Brazil. Fiat Chrysler will have to sort out slumping sales in China under a CEO after the death of Sergio Marchionne announced early Wednesday. And Ford’s problems stem from bloat and stale models.
https://www.msn.com/en-us/money/companies/nightmarish-profit-warnings-have-detroit-reliving-bad-old-days/ar-BBL461h?li=BBnb7Kz
= new reply since forum marked as read
So he can check off President Obama saving the auto industry. Now he can take credit for destroying it.
He's been teaching it for years
