Yahoo Finance General Motors And Ford Are Facing The Same Challenge As They Run Back To Gas-Powered Trucks
General Motors (NYSE: GM) and Ford Motor (NYSE: F) will report their first quarter results next week. They both need to answer how they intend to grow their profits amid the EV slowdown to which even the EV king, Tesla Inc (NASDAQ: TSLA), isn’t immune. Tesla warned of slower growth this year. With the EV sales slump, Tesla shares tumbled as much as 39% year to date. Along with growing competition in China, Tesla has also found itself in the mud, let alone legacy automakers struggling to make their biggest ever transformation for the all-electric era that is still coming, just not as fast.
GM
GM is yet to outline its strategy for restructuring its business in China. Last year, GM delivered 2.1 million vehicles in the world’s greatest EV market. Besides the restructuring, GM also needs to address its struggling Cruise Robotaxi division. But when it comes to seeing consistent profitability, GM is expected to report strong sales of its Chevrolet and GMC trucks, along with SUVs.
Ford
Ford,is getting its power from combustion trucks, along with its Ford Pro commercial vehicles. Ford did affirm its core profit guidance for the year to be in the range between $10 billion and $12 billion.
Last year, Ford lost nearly $4.7 billion EVs. This year, it forecasted the loss of $5 billion. In February, it clearly stated that it will launch the next generation of EVs only a time when they can be profitable. Earlier in April, Ford announced it intends to slow down its major EV programs. Ford has been forced to reconsider to launches of three-row EVs in Canada and its next-generation electric pickup truck built in Tennessee. In a separate announcement, Ford announced it will delay the deliveries of its all-new EV truck it will build at a new plant in western Tennessee until 2026. Last year, it planned to kick off production in late 2025, aiming for an annual output of 500,000 electric trucks. But after reconsidering, it decided to build the output gradually. Meanwhile, Ford continues to boost its hybrid offerings.
Ford and GM are running back to gas-powered trucks.
One thing that is clear is that both Ford and GM are getting power from their combustion trucks at the moment, but the EV era is still coming. GM and Ford are due to provide more details on the tweaking of their strategies as they report their results on Tuesday and Wednesday, respectively.
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