AFP, New York :
General Motors is crying and Ford is laughing: The top US automakers posted wildly different earnings Thursday, the first hurt by recalls, the second lifted by new cash from Europe.
The stock market told the tale: GM shares plunged 4.5 percent to close at $35.74, while Ford rose 0.3 percent to $17.84.
GM, America’s largest automaker, saw heavy charges related to its recall of faulty models push its second-quarter its profit down to $190 million, a hefty 85 percent drop from a year ago.
Ford Motor Company, by contrast, posted a 6.3 percent rise in profit to $1.31 billion in the second quarter, helped by its first profit from European operations in three years.
GM, embroiled in scandal over a long-delayed recall of cars with faulty ignition switches that caused at least 13 deaths, saw higher costs in the second quarter and prepared for more pain to come.
Earnings were hit by a $1.2 billion charge mainly for recall- related repairs of vehicles.
General Motors is crying and Ford is laughing: The top US automakers posted wildly different earnings Thursday, the first hurt by recalls, the second lifted by new cash from Europe.
The stock market told the tale: GM shares plunged 4.5 percent to close at $35.74, while Ford rose 0.3 percent to $17.84.
GM, America’s largest automaker, saw heavy charges related to its recall of faulty models push its second-quarter its profit down to $190 million, a hefty 85 percent drop from a year ago.
Ford Motor Company, by contrast, posted a 6.3 percent rise in profit to $1.31 billion in the second quarter, helped by its first profit from European operations in three years.
GM, embroiled in scandal over a long-delayed recall of cars with faulty ignition switches that caused at least 13 deaths, saw higher costs in the second quarter and prepared for more pain to come.
Earnings were hit by a $1.2 billion charge mainly for recall- related repairs of vehicles.
