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Fiat beats analyst forecasts; GM sales hot in China
Posted 7/23/2009 12:35 AM | Comments 18 | Recommend 6 E-mail | Save | Print | Reprints & Permissions |


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By James R. Healey, USA TODAY
A spate of attention-getting announcements Wednesday was the latest mark of an increasingly chaotic, financially challenged, global auto industry.
Chrysler's savior, Fiat, continues to lose money. General Motors is becoming almost a Chinese car company. Hyundai tops a fresh study evaluating new model launches in the U.S., while Toyota brings up the rear.

Details:

•Italian industrial conglomerate Fiat Group, which took 20% ownership of Chrysler on June 10 and controls the Detroit company, reported Wednesday in Italy that it lost 168 million euros ($239 million) in the second quarter. That was down from a profit of 604 million euros ($859 million) a year ago. It was Fiat's second-consecutive quarterly loss, but it was better than the first quarter and beat analysts' forecasts.

Fiat, planning to revive Chrysler with an infusion of small cars and fuel-efficiency technology, said that despite the net loss, it made an operating profit equivalent to $440 million and cut debt to $8.1 billion from $9.4 billion.

Meanwhile, its Chrysler Group announced it will match the U.S "cash-for-clunkers" incentive of up to $4,500 for some models. The move is meant as an attention-getter for wary shoppers — especially those who don't also qualify for the government voucher.

Rather than a fat new discount, the deal "balls everything into one incentive," spokesman Rick Deneau says. "Our dealers were telling us, 'Keep it simple.' "

•General Motors said even it was surprised by its second-quarter sales success in China. GM reported global sales of 1.94 million worldwide and said a 62% jump in China offset a 32% tumble in the U.S., still considered GM's home market though 72% of quarterly sales were in other countries.

Mike DiGiovanni, GM's head of global market and industry analysis, said the number of Chinese entering the middle class, and able to afford new cars, should drive more growth. China accounted for 21% of GM's sales in the second quarter, at more than 450,000 vehicles, not far behind 538,000 in the U.S.

•South Korean maker Hyundai was tops in a newly created study by consultant J.D. Power and Associates ranking new vehicle launches. It said the 2009 Hyundai Genesis launch outscored 26 others. Second: 2009 Ford F-150 pickup. Worst: 2009 Toyota Matrix.

The index evaluates sales, dealer profits, rebates, quality of the new model and how it stacks up against rivals in styling, features and performance.

Contributing: The Associated Press, Reuters.

http://www.usatoday.com/money/autos/2009-07-22-fiat-earnings-gm-china_N.htm?obref=obinsite