Incentives, economy batter 3Q earnings

Ford Motor Co. executives were less than pleased to hear General Motors Corp. was extending its 0% financing to Nov. 18. GM's announcement came the same day Ford reported steep third-quarter losses of $692 million — including $877 million on automotive operations alone — in part because of the high cost of marketing. With total worldwide vehicle sales of 1,513,000 units, Ford's marketing and incentive costs were a whopping $3,860 per vehicle during the quarter. Ford Chief Financial Officer Martin Inglis calls the 0% financing program “unsustainable.” The carmaker also cut its dividend by 50% — the first cut since the Gulf War recession in 1991. GM, on the other hand, earned $445 million in North America, down from $728 million a year ago, for overall third-quarter earnings of $385 million compared to $829 million last year.