| The 'Big 3' of the auto industry is currently facing | | | | "If the Big Three were running a 26-mile |
| the crucial years of their existence. Hard days are | | | | marathon, GM would be near Mile 20, said |
| triggered by the rising costs and their waning | | | | Rebecca Lindland, an auto analyst at Global Insight. |
| sales. Hence, these automakers are racing to | | | | "Right now, GM is really gaining ground, while the |
| rebuilt the ruins and reconstruct their flagging | | | | other two are falling behind. GM has been |
| businesses. Consequently, analysts say that the | | | | exercising a tremendous amount of financial |
| emerging front-runner among the big three is | | | | discipline and so is in good shape for 2007. That |
| General Motors. | | | | doesn't mean they will start showing profitability |
| Earlier, GM reported lower quarterly earning loss | | | | right away, but they are doing great when you |
| of $115 million compared with $1.7 billion loss in the | | | | compare them with a company like Ford, which in |
| previous year. Analysts also noticed that GM is | | | | this race is only just leaving the starting line." |
| now reaping the fruits of its restructuring plan. | | | | Among the three automakers, Ford's loss is the |
| According to Robert Toomey, chief equities | | | | biggest for more than 14 years now. Lindland |
| strategist at E.K. Riley Advisors in Seattle, "So far | | | | pointed out her grave concerns about Ford which |
| GM is the only one that can be described as in | | | | include its ability to generate revenue. This is |
| turnaround mode." | | | | because some of the car maker's vehicles are |
| Ford is not on the road to recovery yet. Said | | | | not selling well. These vehicles include Ford Fusion, |
| automaker is just starting its 'Way Forward' plan | | | | Mercury Milan, and Lincoln MKZ. Ford auto parts as |
| so far; Ford has lost a remarkable sum worth | | | | well as that of Milan and MKZ need a timely boost |
| $5.8 billion. Chrysler, on one hand, reported $1.5 | | | | to compete well in the market. |
| billion operating loss. | | | | |