Ford, GM go op­po­site ways

Daily Freeman (Kingston, NY) - - NATION+WORLD -

In the same eco­nomic con­di­tions, Ford and Gen­eral Mo­tors seem to be headed in op­po­site di­rec­tions.

Ford’s third-quar­ter profit fell 56 per­cent to $957 mil­lion, while GM’s more than dou­bled to $2.77 bil­lion. At GM, third-quar­ter rev­enue was up while Ford’s was down.

Through Septem­ber, GM’s sales fell nearly 4 per­cent while Ford’s fell less than 1 per­cent, but GM cut low-profit sales to rental car com­pa­nies.

Jef­fries an­a­lyst Philippe Hou­chois says GM has in­tro­duced more new prod­ucts than Ford, and new gen­er­ally sells faster for more money. Ford also bet heav­ily on more ex­pen­sive alu­minum­bod­ied pickup trucks, a good bet un­til fuel prices fell. Now com­peti­tors have more room to dis­count, Hou­chois said. “That kind of adds to the slight gloom that we hear from Ford,” he said.

Both stocks were pun­ished after the earn­ings re­ports as in­vestors an­tic­i­pate a sales slow­down. Hou­chois rates GM as “neu­tral” and ex­pects its stock price to rise 4 per­cent. He’s got Ford at “un­der­per­form” with the price fall­ing al­most 15 per­cent.

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