Reporting on the auto industry can be a bit difficult, these days, certainly if you're hoping to find something good to say. And the latest news is no exception.

Wrapping up the second quarter, General Motors announced a whopping $15.5 billion loss, the third-worst in its history, and nearly double the record loss reported by Ford Motor Co. barely a week before. Chrysler did announce it had found a way to set aside $1.1 billion during the first half of 2008, but that's about the only thing good the automotive arm of Cerberus Capital Management seems to have to talk about these days.

And to make sure prospects don't look any better for the months to come, industry sales numbers showed that the market is, if anything, getting worse, with automakers large and small collectively reporting what would, on an annualized basis, come in at barely 13 million cars, trucks, and crossovers. That's down from an industry peak earlier in the decade of more than 17 million.

Chrysler, in fact, posted the worst downturn of any of the major makers, a 28.8 percent decline for July, with GM close behind, at a 26.1 downturn. Ford was off 14.7 percent, but there was something positive to note there, with the ailing makers passenger car sales actually rising by 1.9 percent. The big downturn - no surprise - across the industry is on the light truck side, where even Toyota reported a 27.1 percent drop, compared to year-earlier sales of vehicles like the Tundra pickup and Land Cruiser SUV.

But even Honda, which has seemingly defied gravity in recent months, proved that Newton was right. The Japanese maker reported an overall 1.6 percent decline.

The one positive surprise? Nissan delivering an overall 8.5 percent increase in July sales, despite its continuing decline on the light truck side. High-mileage small cars, such as the Versa, have helped the Japanese marque gain traction.

And that's what analysts are hoping can put a bit of momentum back into the industry, as makers race to expand production of products like Versa, Honda's Fit, and Toyota's Yaris. But even though domestic manufacturers are shutting truck plants as quickly as possible and converting many to handle small passenger cars, the changeover won't be easy - or quick. The first American version of Ford's new Fiesta, for example, won't roll out a former F-Series plant in Mexico until the 2010 model year.

A slight reprieve in fuel prices could help August's numbers, some analysts believe. But few expect a resurgence in the truck market. And the overall slump in the U.S. economy, with surveys showing consumers expecting even worse, isn't going to help the auto industry.

Indeed, the lending crisis is actually worsening things for the auto industry. Automotive finance subsidiaries and traditional lenders alike are tightening credit and, in many cases, curbing or eliminating entirely the leasing programs that, in recent years, helped get millions of motorists out of used vehicles and into new ones.

"I'm really worried about keeping my doors open," one Detroit-area Lincoln Mercury dealer told me last week. About 80 percent of his business is leasing, noted the retailer, who asked not to be named. And if he can't offer those low-cost deals anymore, he doesn't expect to convert many of his struggling blue-collar customers to a traditional sale.

The leasing cutback could be felt across the industry. For most luxury marques, leasing accounts for 70-plus percent of their business. Yes, makers like Lexus and Mercedes-Benz have more affluent customers, but many of those are also stretching their budgets to stay in the luxury market. If makers are forced to retune leases to reflect financial realities, some products could see huge price jumps. And that could lead many potential customers - especially those coming back for new leases - to walk away.

There's clearly light at the end of the tunnel. But right now, nobody's quite sure when they're going to get near enough to the end of this downturn to see it.

The cuts keep coming, and anyone collecting a check from Detroit's Big Three has to be wondering for how much longer.

General Motors has confirmed that the 15 percent cut in salaried "costs" it announced earlier this month will result in the loss of 5,000 white-collar jobs. Look for the bulk of those cuts to occur in the U.S., though some could be trimmed at overseas operations, as well.

It's hard to keep track of all the players without a scorecard, it seems. So, we've added it all up, and Detroit makers plan to cut 10,000 salaried staff, as part of their latest round of desperation cost-cutting measures.

But that's not the end of the bad news. Chrysler has announced it is indefinitely suspending tuition reimbursement for virtually all of its salaried employees, in the U.S., Canada, and Mexico. Ford took similar steps in June. GM will continue its tuition assistance program, but no one is saying for how much longer.

Look for still more bad news from the domestic giant on Friday, when it releases what, by all expectations, will be a devastatingly bad second-quarter earnings report.

Might as well keep the bad news coming. In this case, it's Chrysler rolling up a wave of red ink - $431 million, to be precise, during the second quarter of the year.

The decision to release financial data came as something of a surprise; as part of the privately held Cerberus Capital Management, the automaker has not been required to provide the figures since last August, when it was sold off by former German parent, Daimler AG.

Comments by CEO Bob Nardelli suggest Chrysler lost about $1.7 billion last year. Officials insist that the April-June 2008 numbers were not all that bad - they certainly looked good in light of Ford Motor Co.'s record $8.7 billion second-quarter deficit - and that they have a "clear strategy" for turning things around. Yet industry analysts are generally more concerned about Chrysler's viability than they are about either Ford or General Motors, which is running deeply in the red as well.

Chrysler sales were down a punishing 22 percent during the first half of 2008, as demand for models like the big Ram pickup and Jeep Grand Cherokee stumbled. Light trucks traditionally account for about two-thirds of the Detroit maker's total volume. But it has had a rougher time regaining traction on the passenger car side of its lineup than either Ford or GM. A number of recent models, such as the Sebring sedan, have fallen short of expectations, partially as the result of poor reviews, but also due to low scores in recent quality reports - such as J.D. Power and Associates' Initial Quality Survey, where Chrysler ranked well below industry average.

Its cross-town rivals have substantial overseas operations, which are helping prop up the weak U.S. market; both Ford and Chrysler are turning to smaller passenger cars and crossovers developed overseas to rebuild their lineups, moving away from trucks. But Chrysler sold off most of its foreign operations decades ago, and it has struggled to set up new operations overseas. The smallest of Detroit's Big Three is now turning to competitors, such as Nissan, and the emerging Chinese maker, Chery, to supply it the small cars American consumers are demanding.

But in the meantime, Chrysler is paring away, announcing, just this week, new plans for large cuts in its white-collar workforce.

While the company insists it is well positioned to survive the current U.S. downturn, observers continue to question how long Cerberus' patience will last if Chrysler's performance doesn't improve soon.

When it comes to fuel economy, the little things matter, sometimes quite a lot, as some of the industry experts I gathered together for a "green car" forum yesterday made clear.

The occasion was the public debut of NextCruise, an event for which I am serving as volunteer chairman - TheCarConnection.com, in full disclosure, is not in any way involved in the event. Three senior industry leaders, one from each of Detroit's Big Three, were on hand and asked what it will take to transform the auto industry into one more environmentally friendly.

"There's no silver bullet," emphasized Micky Bly, a senior powertrain executive at General Motors and a key player in the development of GM's Chevy Volt plug-in hybrid-electric vehicle. Instead, we need to expect a whole range of alternatives to today's conventional gasoline engine.

The likely list ranges from hybrids and plug-ins, like Volt, to clean diesels and hydrogen power. Some of these are ready for the road already, while others, like hydrogen-powered fuel cells, are a decade or more away from production.

Surprisingly, all of the experts on the panel agreed that, as Bly suggested, "the gasoline engine isn't going away" anytime soon. But that doesn't mean technical business-as-usual.

Ford's new EcoBoost engine is an example of big changes in a relatively familiar package. This turbocharged direct-injection engine, which will debut in an upcoming Lincoln product, can deliver V-8 performance with V-6 mileage.

That package is complex, and it isn't cheap. But in some cases, surprisingly simple, low-cost technology will yield significant improvements in efficiency (read: mileage). Like something automotive engineers alternatively call Autostart, or Start-Stop.

If you've driven a full hybrid, like the Toyota Prius or Ford Escape Hybrid, you've undoubtedly experienced the concept. Come to a light, step on the brake and you may notice a subtle shudder, as the gasoline engine is shut off automatically. The light changes, you lift your foot, and before you even reach the accelerator pedal, the engine is running again.

Idling is a hidden thief, capable of robbing a gallon or more an hour, whether you're sitting in heavy freeway traffic, or waiting on line for a coffee to go. Recent studies show that you can save fuel shutting an engine off for as little as 15 seconds rather than idling. Few of us want to keep switching on-and-off as we creep forward in line, or in traffic, so it's great to have the car do it for you automatically.

"In 10 years, you'll be looked at as low-tech if your car runs at idle," said another speaker at the NextCruise forum, Chrysler's senior manager of hybrid system integration Jay Iyengar. And it won't be just hybrids offering the feature, but just about every vehicle on the road.

What other features might we see? While BMW wasn't on hand for the Wednesday panel, the company will be participating in the actual NextCruise next month, and we imagine it'll be talking about some of the mileage-minded features on the new 1-Series, such as its electric power steering. BMW isn't alone there, of course. On the I-4 version of the Saturn Vue, electric v hydraulic power steering saves about a mile a gallon. But the BMW 1-er uses a new, rack-mounted motor that restores the sort of handling and road feel earlier electric steering systems lost.

Look for that technology to spread, as, I believe, will the new 1-Series system that automatically decouples the car's alternator when the battery is charged up. Spinning power steering pumps and alternators can suck several miles a gallon off your mileage numbers. This new system is available only in Europe - for now - but look for it to propagate fast, as automakers race to meet tough new mileage standards.

Yes, it's possible to yield big savings through major efforts, like adopting lightweight body panels and switching to advanced powertrain technologies. But manufacturers have yet to pluck all the low-hanging fruit. So relatively simple systems, like Autostart, will play an important role in the greening of the automobile.

Oh, and for those interested in the upcoming NextCruise, here's the formal press release:
2008 Inaugural NextCruise^TM Brings Environmentally Friendly and Future-Looking Dimension to Woodward Dream Cruise
Nine Auto Manufacturers - And Two "Green' Motorsport Series - To Display Technologies And Provide Public Ride And Drives
Pleasant Ridge, Mich., July 23 - The 2008 Inaugural NextCruise^TM, to take place on August 15-16, is a new event - new in both concept and content. Staged in the City of Pleasant Ridge, NextCruise^TM introduces an environmentally friendly and future-looking dimension to the Woodward Dream Cruise, widely viewed as the world's largest automotive spectator and participation event.

Nine of the world's largest automakers are supporting NextCruise^TM, by providing the public with multiple opportunities to check out - and drive - the latest in "Green Machines" (including hybrids, clean diesels and those with other, new super-high-mileage and ultra-low-emission technologies).

"NextCruise^TM marks a number of important firsts," said Paul Eisenstein, Event Chairman. " It's the first-ever public event that brings together such a large array of leading automakers, specifically to display environmental vehicles and technologies; the first-ever event where the public has the chance to drive such a wide assortment of clean, high-economy cars, trucks and crossovers; and it's the first-ever official Woodward Dream Cruise event that is specifically future-focused.

"NextCruise^TM helps expand the relevance of the Woodward Dream Cruise from what is primarily a retrospective into a celebration of the automobile, past, present and future," Eisenstein added.

NextCruise^TM will also feature displays of even more advanced green concepts and technologies, such as fuel cells and hydrogen-powered internal combustion engines, together with experts to provide insight into how those developments can reach production in the not-too-distant future.

"As Pleasant Ridge has the longest stretch of green space on the entire Woodward Corridor, it's highly fitting that the City should be the host of this "Green" event as part of the Woodward Dream Cruise," said George Lenko, Pleasant Ridge Commissioner and NextCruise^TM organizer. NextCruise^TM will be based in Memorial Park, immediately adjacent to Pleasant Ridge City Hall.

"Today's and tomorrow's Green Machines challenge the stereotype that environmentally-friendly automobiles require customers to make significant sacrifices: in size, features, comfort and, especially, performance," said Eisenstein. "NextCruise^TM provides a venue for manufacturers to display current and future Green technologies and engage the public in understanding that the newest Green Machines are roomy, well-equipped and, in keeping with the spirit of the Dream Cruise, able to deliver surprising performance and fun."

NextCruise^TM also will include a look at the next generation of "green" motorsports, including the ethanol-fueled IndyCar Series, and the American Le Mans Series (ALMS), which features a unique Green Racing Challenge this season. The Detroit Belle Isle Grand Prix - which takes place on Labor Day weekend - includes both IndyCar and ALMS races. The motorsport display will include race cars and appearances by key IndyCar and ALMS drivers.

"Because of the press of competition, motorsport has traditionally developed technologies that have found their way to production cars," Eisenstein stated. "Motorsport can be exciting, competitive and environmentally friendly, all at the same time.

"NextCruise^TM, put simply, is lean, mean ... and green."

NextCruise^TM will be held in Pleasant Ridge's Memorial Park along Woodward Avenue, north of Nine Mile Road. There will be a public preview on the evening of August 15. NextCruise^TM itself takes place concurrent with the Woodward Dream Cruise on August 16. Major auto manufacturers supporting include General Motors, Ford, Chrysler, Toyota, Nissan, BMW, Mercedes-Benz, Audi and Volkswagen. Other sponsors and exhibitors include Bridgestone, Detroit Belle Isle Grand Prix, IndyCar Series, American Le Mans Series, PR Newswire, G-2 Communications and ESI. For information go to www.nextcruise2008.com or email nextcruise2008@aol.com.

Pleasant Ridge is known for its historic homes, tree-lined streets and active citizens who dedicate their time for the betterment of the community. A long tradition of community pride is reflected in the City's beautiful parks along Woodward Avenue and its pristine neighborhoods. Many of the houses in Pleasant Ridge are part of a nationally-recognized historic district and all the homes reflect the care and attention which assures that Pleasant Ridge will remain a beautiful community for generations to come. A strong sense of community, dedication to historic preservation and ideal location makes Pleasant Ridge the perfect city for all ages, interests and lifestyles. Go to www.cityofpleasantridge.org.

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It took a full term before the current White House occupant made any serious effort to deal with the domestic auto industry. Not so when it comes to the two men currently chasing the Oval Office.

Detroit and its Big Three automakers are becoming a frequent backdrop for Sens. Barrack Obama and John McCain, the latter shown here during his latest campaign trip, speaking to a town hall audience of General Motors workers.

Both of the presumptive candidates have been outlining ways that they’d try to help the Motor City’s ailing Big Three, including McCain’s proposal for a $300 million prize to the company that could come up with a competitive electric vehicle battery, and a $5,000 credit to those who buy zero-emission vehicles.

Trailing his Democratic rival, in part because of perceived weaknesses on the economy, McCain told several 100 GM workers, "The key, integral, vital part of our ability to eliminate our dependence on foreign oil will be directly related to that sign over there,” said McCain, pointing to a sign for the Chevrolet Volt, a plug-in hybrid that GM plans to launch in 2010. "I wish you every success, and I want to help in every way."

Michigan and neighboring industrial states, notably Ohio, are considered crucial in the 2008 election, and could wind up delivering the deciding electoral votes.