>> The US auto industry's long recovery from the despair of the great recession has finally reached the end of the road. That's the declaration coming out of Ford Motor on Thursday, the number two US auto maker missing quarterly earnings expectations despite having the best selling truck of all time.
I'm Conway Gittens in New York. Ford hit with softness everywhere it turned. In the US which makes up a huge lion's share of the company's profits demand in showing signs of strain, after automakers racked up record annual sales last year. Competition getting so fierce that Ford is forced to join rivals in boosting discounts and promotions to get autos off the lot.
That lead to weaker than expected earnings. The outlook bleak enough to lead Ford to slash production for the rest of the year, and speed up cost cutting. But the US isn't Ford's only problem. Weakness in China led to the first quarterly loss in the Asia region in three years.
And the fallout from Britain's decision to leave the European Union is causing headaches. Brexit uncertainty will cost it up to half a billion dollars each year if Britain fails to complete the divorce, the company says. You would think Ford would be optimistic about the rest of Europe, since profits there surged nearly 200%, but even there, Ford doesn't expect that kind of growth to hold up.
All this pessimism driving shares down 10%, and taking all the auto stock along for the ride lower.