Ford Motor reported earnings per share (EPS) of $0.49 for the first quarter, exceeding analyst estimates of $0.42. Revenue for the quarter came in at $42.8 billion, slightly below the consensus estimate of $42.94 billion. Ford’s stock price closed at $13.04, up from $11.39 three months ago and $11.78 one year ago. Over the last 90 days, the company has received four positive EPS revisions and three negative revisions.
Volkswagen plans to introduce 16 new electric vehicles to its ID family in China by 2030, targeting a 15% market share and challenging BYD’s dominance. The company will expand its research and development team, collaborate with local automakers like Xpeng, and develop an entry-level EV platform to cater to Chinese consumers. Volkswagen aims to accelerate model development and cater to Chinese preferences, prioritizing electric vehicles and collaborating with local partners to establish a strong presence in China’s competitive auto market.
Ford Motor Company is set to release its first-quarter financial results after the market closes on Wednesday. Analysts estimate adjusted earnings per share of 42 cents and automotive revenue of $40.10 billion. These projections represent a 2.6% increase in revenue and a 32.9% decrease in adjusted earnings per share compared to the same period last year.
The United States Department of Energy has approved a $362 million loan to CelLink Corp. to support the construction of a plant in Texas dedicated to manufacturing components for electric vehicle assembly. This financing, provided through the government’s Advanced Technology Vehicles Manufacturing loan program, aims to advance the development of lighter and more efficient flexible circuit wiring harnesses for various industries, including automotive. Once operational, the plant is estimated to produce enough wiring harnesses to contribute to the manufacturing of approximately 2.7 million electric vehicles annually, generating over 1,200 employment opportunities.
Daryl Kenningham, President and CEO of Group 1 Automotive, provides insights into the current state of the auto market. He discusses price trends for new and used cars, consumer demand for electric and hybrid vehicles, and the impact of supply chain issues on the industry.
Stellantis, the parent company of Jeep, has announced plans to lay off an unspecified number of workers at its U.S. factories in the coming months to address the rapidly changing global auto market and the transition to electric vehicles. Despite reduced U.S. sales in the first quarter and increased capital spending, the company aims to improve productivity and ensure long-term sustainability. Details regarding the start of layoffs and specific reasons were not disclosed, but Automotive News reported recent layoffs at a Ram pickup truck factory in Michigan. CEO Carlos Tavares emphasizes the need for cost-cutting measures to make electric vehicles affordable for the middle class.
Deutsche Bank has maintained a Hold rating on General Motors, while raising its EBIT and EPS forecasts for 2024. The firm acknowledges GM’s recent stock price increase, driven by favorable market response to its first-quarter performance and revised upward guidance. GM management anticipates an improvement in second-quarter EBIT, supported by increased volume and recovery in international markets like China. However, potential pricing weakness remains a concern, despite stability in April pricing. Despite planning for a 2-2.5% decline in EBIT for the second half of 2023, GM’s pricing stability in April may positively impact the full-year outlook. The transition to electric vehicles (EVs) is expected to affect product mix, with higher EV volumes and lower margins. GM reiterates its near-term EV targets and aims for a 60-point EBIT margin improvement in 2024, with a mid-single-digit EV EBIT margin in 2025.
A record number of 4,694 electric vehicles from China have arrived at the Port of Bristol, marking a significant shift in the UK’s automotive landscape. These affordable cars, some retailing for less than £10,000, are expected to flood UK dealerships, offering consumers a wider range of options in the growing electric vehicle market.
Honda’s upcoming announcement of a multi-billion dollar investment in Ontario’s electric vehicle (EV) sector is a major milestone in Canada’s automotive industry. The deal is expected to be the largest in Canadian history, surpassing Volkswagen’s recent $7 billion battery plant investment. Honda’s plans include assembling EVs and establishing a supply chain for EV components in the province. This investment is a significant boost to Canada’s efforts to become a leader in the EV sector and meet its carbon emissions reduction targets.
Tesla has announced plans to lay off 6,020 employees in Texas and California. The cuts, part of a broader restructuring strategy, will save the company over $1 billion annually. Tesla will also accelerate the launch of new, more affordable models ahead of schedule.
