F Ford Motor Company

By Charley Grant 

Halloween has arrived early for automotive industry investors. At least it seemed that way on Friday after a frightful round of corporate news.

Daimler warned that its full-year operating profit would be "significantly below market expectations." The company said the main reason for the guidance cut was higher expenses due to "ongoing governmental proceedings" around the world regarding Mercedes-Benz diesel vehicles. Shares fell nearly 3% on Friday.

Meanwhile, French tire manufacturer Michelin warned Thursday of a "significant" decline in passenger car, light truck, and truck tire markets late in the third quarter and continuing into the fourth, particularly in China. The stock deflated by 9% in Paris on Friday.

U.S. manufacturers weren't exempt. Analysts at Morgan Stanley downgraded Ford Motor and lowered their price target to $10 a share from $14. The stock is flirting with a multiyear low.

The notoriously cyclical auto business has had a surprisingly good run since the crisis. No surprise, then, that investors have become carsick when the road gets a bit bumpy.

Write to Charley Grant at charles.grant@wsj.com

(END) Dow Jones Newswires

October 19, 2018 12:41 ET (16:41 GMT)

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