American Motors Loses $19 Million in 3rd Quarter

Citing increased costs due to cut-rate financing incentives, American Motors reported that it lost $19.1 million in the third quarter. A year ago, AMC reported a third-quarter profit of $2.5 million.

Revenue for the third quarter totaled $1.03 billion, up 0.7% from $1.02 billion a year ago.

The quarterly earnings loss marks the third consecutive period that the company has not turned a profit. AMC posted losses this year of $29 million in the first quarter and $70.4 million in the second quarter.

Auto analysts said the results were in line with their expectations. “AMC was forced to follow the incentive action of the other auto manufacturers even though they can’t afford it,” said John Hammond, an auto industry analyst with Data Resources.

American Motors began offering 7.5% financing on its leftover 1985 models in late August after General Motors, Ford and Chrysler announced similar buyer incentive programs.

Plagued by increasing competition in the small-car market, the No. 5 domestic auto maker said its North American car sales declined 40.4% in the third quarter to 36,823 units from 61,754 last year. Its Jeep sales, however, increased 44.2% to 55,903 units from 38,762.