Ford posts $3 billion loss, Toyota shares dive

Ford Motor Co posted a $2.98 billion quarterly operating loss and shares in world No. 1 automaker Toyota Motor Corp plunged on Friday after it warned this year's profits would hit a 13-year low.

Ford also said it would cut salaried expenses by another 10 percent, following on a program that cut such costs 15 percent earlier in 2008.

Analysts on average had expected Ford and General Motors Corp, which reports later on Friday, to post losses of roughly $2 billion each for the third quarter excluding one-time items, according to Reuters Estimates.

In Germany both BMW, the world's largest premium carmaker, and its archrival Mercedes-Benz Cars of Daimler, posted sharp unit sales declines in October, citing continued weakness in U.S. and western European markets. Porsche is expected to report pretax profit fell 5.1 percent in the fiscal year to end-July, later on Friday.

Toyota shares fell as much as 13 percent in reaction to Thursday's results.

Car sales around the world are stalling, and analysts said the Japanese group's policy of breakneck expansion has left it especially exposed to an industry crunch brought on by the global financial crisis.

The credit crisis has meant many consumers are unable to access loan to fund auto purchases.

BMW suffered a comparatively mild 8.3 percent decline in group sales to 113,005 vehicles in October, while Mercedes-Benz Cars saw volumes fall 18.1 percent to 82,500 units.

GM and Ford's results come at the end of a week that started with reports that U.S. auto sales plunged to the lowest annualized rate in a quarter century in the first month of the fourth quarter.

GM has also said it plans to announce more cost cuts as part of quarterly results.

Faced with accelerating cash burn -- U.S. automakers have called for an industrywide rescue package. GM, which burned through more than $1 billion per month in the second quarter, warned on Wednesday the industry's prospects are dwindling fast due to the "near collapse" in demand for cars.

Both BMW and Mercedes have reduced profit forecasts for their automobile businesses in two consecutive quarters following a sharp drop in demand.

Nissan Motor and Suzuki Motor also issued profit warnings last month.

Source: EconomicTimes