[darkpuppet]

sobering news article on the US auto industry

some clips from it...

Quote: DETROIT (Reuters) - A miserable year for U.S. automakers General Motors Corp. (GM) and Ford Motor Co. (F) looks set to turn even worse in the aftermath of Hurricane Katrina.

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"SUV sales aren't just slowing -- they're crashing to a halt," he told Reuters, referring to traditional truck-based SUVs, not the "crossover" car-based variety that deliver better highway performance and fuel economy.

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Analyst David Healy of Burnham Securities told Reuters in an interview last week that neither company is likely to return to profitability in North America before 2008.

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U.S. carmakers' heavy dependence on big SUVs amid stalling demand was a factor cited by the Standard & Poor's ratings agency when it downgraded the debt of GM and Ford to high-yield, or "junk," status in May.

The auto giants, weakened by their seeming inability to sell enough cars without the use of profit-eroding discounts, have also been struggling under the burden of soaring costs for everything from health care to raw materials.

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But tensions are mounting in Detroit, a redoubt of American trade unionism, as the U.S. carmakers bleed a slow but seemingly unstoppable flow of market share to foreign rivals led by Toyota Motor Corp. .

a bit sensationalist, but pretty sobering thoughts...