Re: Query: Ford/General Motors

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Wall Street analysts said they'd like to see GM -- as well as Ford -- make more money from selling cars and trucks. Ford is even more dependent than GM on its credit business, getting about 77 percent of its profits from there. "I think at both GM and Ford the reliance is a general concern. If you buy the stock of these companies, it's like you are buying a finance company that comes with an auto piece attached," said Daman Blakeney, an equity analyst for Victory Capital Management, which manages about $50 billion for investors. "They are supposed to be selling cars and making money at that." Worldwide, GM's profits on the sale of new cars and trucks rose to $529 million, up from $140 million a year ago. In North America, GM earned $328 million, up from $83 million a year ago. GM sales for the quarter grew 7 percent to $49.1 billion, up from $48.3 billion a year ago, largely because it sold more vehicles in Latin America and the Asian Pacific. GM continued to struggle in Europe, which has been a sore spot for years. GM had quarterly losses of $45 million, compared with a loss of $3 million a year ago. Devine said sales improved in Europe but GM's costs were too high, a signal GM may be preparing for more cuts on the continent. FULL: http://www.freep.com/money/autonews/gm22_20040722.htm