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Stock impact report

The Auto Industry's Ticking Time Bomb: How Plunging Used Car Prices Could Devastate Automakers [The Motley Fool]

General Motors Company (GM) 
Last general motors company earnings: 2/5 08:05 am Check Earnings Report
US:NYSE Investor Relations: gm.com/investors/index.html
Company Research Source: The Motley Fool
It only takes a few minutes of skimming headlines and articles covering the automotive industry to turn a smile upside down. Major manufacturing plants from automakers such asFord(NYSE:FGeneral MotorsNYSE:GMBut there's one factor investors may have overlooked that could also cripple major automakers: Plunging used-car prices. Sounds weird, right? Here's exactly how and why used car prices impact Ford and GM, and examples of how bad it could be.Financial arms 0If all you know about Ford and General Motors is that theyprimarily manufacture and sell vehicleshugelyImage source: Ford's Q 09 and Full Year Earnings Review.Outside of Ford's lucrative North America region, Ford Credit generates more pre-tax profit than its South America, Europe, China, Asia Pacific Operations, and Middle East and Africa, combined.GMF performed in similar fashion: GMF generated $. billion pre-tax earnings in 09, which was more than its unprofitable international operations and a big chunk of its total $8. billi Show less Read more
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