General Motors and Fiat Chrysler beat Wall Street expectations as major automakers, suppliers and dealers launch a new coalition to urge U.S. President Donald Trump not to withdraw from NAFTA. Roselle Chen reports.
Two big automakers reporting earnings for the third quarter. General Motors posted stronger-than-expected pre-tax profit. Fiat Chrysler came in with a jump in adjusted operating profit. Both benefited from a strong demand for trucks and SUVs in North America. And both issued positives outlooks. Their stocks traded higher on Tuesday. Autotrader's Michelle Krebs. (SOUNDBITE) MICHELLE KREBS, EXECUTIVE ANALYST, AUTOTRADER (ENGLISH) SAYING: "I would say one word applies: discipline. Both companies have been very disciplined. If you look at General Motors, they got out of failing markets. Europe was never going to turn around for them in the foreseeable future. They got out of India. They've been disciplined about trying to cut back production and lowering daily rental sales. If you look at Fiat Chrysler, they look brilliant for getting out of the car business and focusing on the sport utility market, and they are starting to be more disciplined about the daily rental business cutting back." Also on Tuesday, major automakers, suppliers and auto dealers launched a new coalition to urge U.S. President Donald Trump not to withdraw from the North American Free Trade Agreement. They say NAFTA has been crucial in boosting production and jobs, and withdrawing from it won't help. (SOUNDBITE) MICHELLE KREBS, EXECUTIVE ANALYST, AUTOTRADER (ENGLISH) SAYING: "It will have the opposite effect. It will not create jobs. It will lower jobs." A U.S. withdrawal from NAFTA could mean high tariffs for automakers who are building trucks in Mexico and new tariffs on parts and cars made throughout North America.