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Civic LessonSurprise first-quarter profit for Honda, unsurprising giant loss for FordPosted at 11:59 AM on 25 Jul 2008Despite an economy that has hit automakers hard, Honda Motor Co. on Friday reported an unexpected record profit for its fiscal first quarter, crediting demand for fuel-efficient Civics and Fits for the surprise boost. Honda was the only automaker to report better U.S. sales in June 2008 than in June 2007, though small-car specialists Kia and Fiat SpA also reported first-quarter profits. In contrast, Ford Motor Co., which only recently decided to shift away from reliance on trucks and SUVs, reported an $8.7 billion quarterly loss, the worst in its 105-year history. Toyota, Nissan, and General Motors will all announce earnings in the next few weeks; GM is expected to join Ford in reporting a substantial loss.sources: Bloomberg, Associated Press, The Wall Street Journal, The New York Times |
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