General Motors () is scheduled to report quarterly results before market open on Tuesday, October 22, with a conference call scheduled for 8:30 am EST, while Ford () is scheduled to report after market close on Monday, October 28, with a conference call scheduled for 5:00 pm EST. What to watch for:
GM SALES: In October, GM said it and its dealers increased retail sales by 3% year over year and delivered 659,601 total vehicles, down 2%, in the U.S. in Q3. The company said it achieved another record quarter of EV sales with 32,195 total deliveries, up 60% year-over-year and up 46% compared to Q2. “GM’s EV portfolio is growing faster than the market because we have an all-electric vehicle for just about everybody, no matter what they like to drive,” said Rory Harvey, GM EVP and president of Global Markets. GM and its joint ventures also delivered over 426,000 vehicles in China in Q3. The quarter’s 14.3% sequential growth rate was the highest since 3Q22.
GM GUIDANCE: Along with its Q2 results, the company raised its FY24 adjusted EPS view to $9.50-$10.50 from $9.00-$10.00. Consensus, which stood at $9.71 at the time, has since risen to $10.00. The company also raised its FY24 adjusted EBITDA view to $13B-$15B from $12.5B-$14.5B and sees FY24 capital spending $10.5B-$11.5B.
GM PARTNERSHIPS, INITIATIVES: The Environmental Protection Agency announced in July that GM has agreed to retire approximately 50M metric tons of greenhouse gas credits to resolve excess CO2 emissions identified through EPA’s light-duty vehicle in-use testing program. Also in July, GM announced that with a $500M grant from the U.S. Department of Energy and its own investment, the company was preparing Lansing Grand River for electrification. Additionally in July, GM Defense Canada announced it had been awarded a C$35.8M contract by the Canadian Armed Forces for 90 light tactical vehicles. In August, Uber () and GM’s Cruise announced a multiyear strategic partnership to bring Cruise autonomous vehicles to the Uber platform. SAMSUNG SDI () also announced in August that the company has completed and signed an agreement with GM to establish a joint venture to supply EV batteries in the United States. Additionally in August, GM announced it is moving its BrightDrop electric commercial vans under the Chevrolet brand. In September, GM and Hyundai Motor () announced that they have signed an agreement to explore future collaboration and EVgo () and GM announced that they are taking charging to the next level by deploying 400 fast charging stalls. The company also announced the opening up of access to more than 17,800 Tesla () Superchargers for its customers in September.
CRUISE RESUMPTION: In May, Cruise resumed supervised autonomous driving with safety drivers after the company paused driverless operations following an October 2023 incident. In June, GM CFO Paul Jacobson said the company will invest $850M in Cruise to help cover operational costs. In a July letter to shareholders, GM CEO Mary Barra, said “Cruise has returned to the road in Houston, Phoenix and Dallas and we recently made several significant leadership appointments, including hiring Marc Whitten as CEO…The Cruise team will also simplify their path to scale by focusing their next autonomous vehicle on the next-generation Chevrolet Bolt, instead of the Origin. This addresses the regulatory uncertainty we faced with the Origin because of its unique design. In addition, per-unit costs will be much lower, which will help Cruise optimize its resources.” In September, the National Highway Traffic Safety Administration announced a consent order with Cruise. The action addresses several incomplete reports by the company under NHTSA’s Standing General Order for crashes involving automated driving systems. The base term of the order is two years, with NHTSA reserving the option to extend the order for a third year. As part of the order, Cruise will pay a total monetary penalty of $1.5M and is required to submit to NHTSA a corrective action plan on how it will improve its compliance with the Standing General Order.
ANALYST VIEW: On Monday, RBC Capital raised the firm’s price target on GM to $58 from $54 and kept an Outperform rating on the shares as part of a broader research note previewing Q3 results for global automakers. Sector shares have pulled back, and while consensus numbers have been scaled down, there is further downside risk to estimates amid bearish macro sentiment, with many investors wondering a deflationary period after post-pandemic price hikes has arrived, the analyst said. GM appears to be among the few names positioned to weather a severe price deflationary situation however, the firm added.
FORD SALES: In August, Ford reported July U.S. sales were down 0.2% to 173,223 vehicles versus 173,639 a year ago. Electric vehicle sales of 8,242 were up 31.2% year-over-year, hybrid vehicle sales of 16,825 were up 47.0% year-over-year and internal combustion vehicle sales of 148,156 were down 5.0% compared to last July. In September, Ford reported August U.S. total vehicle sales of 182,985, up 13.4% from 161,300 in the same month of last year. Electric Vehicle sales of 8,944, up 28.9% year-over-year; Hybrid Vehicle sales of 16,394, up 49.8%; and Internal Combustion sales of 157,647, up 9.9% from last year. In October, Ford reported Q3 total vehicles sales of 504,039, up 0.7% compared to the same quarter of last year. Electric Vehicle sales of 23,509, up 12.2% year-over-year; Hybrid Vehicle sales of 48,101, up 38.0%; and Internal Combustion sales of 432,429 vehicles, down 2.8% from last year.FORD PARTNERSHIPS, INITIATIVES: In July, Ford Pro rolled out the Ford Pro Smart Charging Bundle for businesses in California. The company also announced in July a $3B investment to expand Super Duty production with plans for assembly at its Oakville Assembly Complex in Canada in 2026. In August, Ford and TXU Energy, a subsidiary of Vistra , announced a partnership to create a new retail energy offering for Ford electric SUV and truck customers in Texas. Additionally in August, Ford announced the broadening of its electrification strategy prioritizing the introduction of a digitally advanced commercial van in 2026, followed by two new advanced pickup trucks in 2027. Along with that announcement, Ford canceled plans for its all-electric three-row SUVs noting the company could see charges up to $1.9B. In September, Ford announced that Ted Cannis, CEO, Ford Pro and Ford Customer Service Division, had elected to retire. Andrew Frick, president of Ford Blue, also will lead Ford Pro on interim basis. Additionally in September, Ford announced the Ford Power Promise, a suite of benefits for customers who purchase or lease a new electric vehicle.ANALYST VIEW: On Tuesday, Barclays lowered the firm’s price target on Ford to $14 from $16 and kept an Overweight rating on the shares as part of a Q3 earnings preview for the autos and mobility space. The firm continues to favor car makers over suppliers. However, suppliers face weak investor sentiment, and hopes are emerging of an end to negative estimate revisions, the analyst said.More By This Author:
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