Ford shares headed down sharply after the company announced quarterly earnings 18 cents per-share lower than analyst expectations. The miss cast a shadow on the report from Ford, which posted its best annual profit in a more than decade -- $6.6 billion.
GM reported Wednesday that sales fell 25% year-over-year in August as the recovery appeared to stall and cautious consumers held back on buying cars. But despite the downturn, GM officials said they remain upbeat that the hard-hit auto industry will continue to improve in the months ahead.
Auto sales braked sharply in August, starting out strong, then slowing to a level that may be the lowest in 28 years. The weak economy made nervous consumers hesitant to buy, despite the bevy of end-of-model-year deals.
Among domestic makes, Ford, General Motors and Chrysler all reported total increases in the single digits, but Japanese giants Toyota and Honda slipped.
Analysts' expectations are that sales rose to the highest levels of the year last month as increased automaker incentives lured bargain-hunters.
At the auto show in Detroit, U.S. Secretary of Transportation Ray LaHood described "Cash for Clunkers" as "the most wildly successful program ever." The remarks suggest the guzzler trade-in program may not have driven into the sunset. But with a majority of Americans opposing it, a retread may not be the best idea.
