GM, Chrysler report Q3 earnings Wednesday

General Motors and Chrysler Group are due to report third-quarter earnings Wednesday, testing whether they were able to sail on the same strong breeze that propelled Ford Motor to healthy results last week.

The earnings reports are due early in the day. Both automakers discuss the numbers later in the morning with investment analysts and journalists. .

While car sales in the U.S. are expected to be a bright spot as the economy recovers, the real test will be whether Europe has recovered sufficiently to avoid dragging down the fortunes of GM and Chrysler's parent, Fiat, there.

China is important, too, and the market for cars there continues to grow.

On Tuesday, the government's General Accountability Office issued an update on GM, citing "increasingly positive financial results" as the car company continues to make progress from its low in 2009, when both it and Chrysler went through government-scripted Chapter 11 bankruptcy reorganizations.

"For each of the past three years, GM has reported profits, positive and growing operational cash flow, and a stable liquidity position. This improved financial performance has been reflected in GM's credit rating, as each of the three largest credit rating agencies has increased GM's long-term credit rating," the GAO wrote.

The GAO noted, however, that GM has lower market share than before its bankruptcy filing and it still has a large pension liability, despite a series of moves to reduce the burden.

Data from Kelley Blue Book show GM's share of the U.S. new-vehicle market is 17.7% in the third quarter this year. Its Q3 market share from 2007 before the Great Recession hit hard, to last year, generally has tracked down, from 25.1% in 2007 to 18% a year ago.