DETROIT -- Ford Motor Co. posted its worst quarterly loss ever Thursday in a roiling global auto market that also saw profits fall at Daimler AG, Hyundai Motor Co. and AutoNation Inc. Renault SA reported a profit increase in the first half of the year but still plans to cut jobs and scale back production.
The rising cost of oil and raw materials and the economic slowdown in North America and Western Europe were generally to blame for the automakers' woes. In the U.S., auto sales dropped 10 percent in the first half of the year as consumers were stunned by high gas prices and falling home values. Sales in Europe dropped 8 percent in June and threaten to continue their slide.
"Demand in Western Europe has deteriorated sharply and there are no signs of recovery in the remainder of the year," Standard and Poor's Ratings Services said Thursday as it revised its outlook on Renault to negative.
AutoNation Inc., the largest U.S. auto retailer, said its second-quarter profits tumbled 33 percent to $51.8 million as sales dried up. The Fort Lauderdale, Fla.-based company announced plans to cut 1,300 jobs and sell underperforming dealerships in order to reduce costs by $100 million per year.
AutoNation Chairman and Chief Executive Officer Mike Jackson said the quarter "was the most challenging automotive sales environment any of us have encountered."
But by far the most stunning news came from Dearborn-based Ford, which reported an $8.67 billion loss for the second quarter, surpassing its previous record quarterly loss of $6.7 billion in the first quarter of 1992.
Ford lost $3.88 per share in the April-June quarter, compared with net profit of $750 million, or 31 cents per share, in the same quarter a year ago.
The net loss included $8.03 billion in write-downs because of the sharp decline in U.S. truck and sport utility vehicle sales, which has reduced the value of Ford's North American plants and equipment and Ford Motor Credit Co.'s lease portfolio.
Ford's truck and SUV sales fell 18 percent in the first six months of this year.
Even excluding those items, Ford lost 62 cents per share, worse than Wall Street expected.
Twelve analysts surveyed by Thomson Financial, on average, expected a 27 cent loss per share.
Ford's second-quarter revenue was $38.6 billion, down $5.6 billion from the year-ago period.
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