BMW, VW-Audi's U.S. Operations Are Starting To Bleed Cash

It's not much of a consolation, but European car manufacturers are having a seriously hard time in the U.S. It's not just Ford, GM and Chrysler fighting off the red ink.

According to Adam Jonas, London-based auto analyst with investment banker Morgan Stanley, European automakers earned 31 per cent of their profits in the U.S. in 2001. This had fallen to 4 per cent in 2007, while the Europeans will be losing money in the U.S. by 2010.

The most important European importers are BMW, Mercedes, VW and its premium subsidiary Audi. Porsche's sales are slowing, but it's not likely to be losing money in the U.S.