Let's compare the 2008 results of three major auto makers:
- Auto sales: 148 bn $ (-17 %)
- "Automotive cost of sales" excl. all overheads ("selling, general, admin and other expenses"): 149 bn $
- Total operating loss: 21 bn $
- Total loss incl. non-operating items: 31 bn $
- Sh.equity: -86 bn $ (39 bn $ deterioration compared to 07)
Comment: GM didn't even manage to earn enough revenue to cover the cost of building the cars, excluding all selling, general, admin, overhead and non-recurring expenses.
- Auto sales: 129 bn $ (-16 %)
- Operating loss: 9 bn $
- Total loss: 15 bn $
- Sh.equity: -17 bn $ (23 bn $ deterioration compared to 07)
Comment: While GM's losses are much higher, it's amazing that Ford thinks it can ride out the crisis without anybody's help: A negative equity of 17 bn $ isn't exactly a solid capital base. Plus: Ford hasn't been profitable in a looooong time: It posted operating losses every year 2004-2008 (35.6 bn $ over 5 years; I don't know if they were profitable prior to 2004, because I couldn't be bothered to look up earlier years)
- Auto sales: 107 bn € (+ 4%)
- Operating profit: 5.8 bn €
- Total profit: 4.7 bn €
- Sh.equity: 37 bn €
- Sh.equity after taking out all intangibles: 25 bn €
Comment: VW might be facing all sorts of problems in 2009, but compared to GM and Ford, it's amazing how boringly solid their numbers look...
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