Image: GoAuto
Image: GoAuto
AutoExec Summary
The second-quarter financial performance of America’s three largest automotive firms has been deemed disappointing by Wall Street. Ford and Stellantis saw stock falls of 4.5% and 48.0% respectively, while General Motors (GM) had a slight uptick of 14%. Analysts are concerned about the shaky full-year projections for all three companies due to factors such as rising inventories, higher incentives, and market volatility. Ford’s net income fell to $1.8 billion, with investors growing impatient with its green fleet strategy. Stellantis is facing challenges in the North American market, while GM raised its adjusted earnings forecast but lowered its net income forecast. The company is delaying production of electric pick-ups and postponing the launch of a new electric vehicle. Overall, the automotive industry is facing competition, excess capacity, and risks in both the cyclical and secular markets.
Brands mentioned: Ford, Stellantis, General Motors (GM), Buick
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