DETROIT — Not since the Great Recession have the Detroit 3 given so bleak a financial outlook as they did last week in reporting their latest earnings. But unlike a decade ago, all three remain solidly profitable.
General Motors, Ford Motor Co. and Fiat Chrysler Automobiles all scaled back expectations for the remainder of the year as second-quarter earnings fell, and investors battered their stocks.
Ford's results might have been the most troubling. Its quarterly earnings tumbled 48 percent, and it lowered its guidance after CEO Jim Hackett said he was "very disappointed" by unexpectedly poor results in China and Europe. The automaker said it needs to undergo a global restructuring that could cost $11 billion over the next three to five years.
During Ford's earnings call, Morgan Stanley analyst Adam Jonas hammered Hackett and CFO Bob Shanks for providing too few details on what that restructuring effort might entail and postponing a September investor conference, saying the company's communications strategy "just isn't good enough."