General Motors reported a slight dip in overall vehicle sales but saw strong growth in its EV segment. The company highlighted record EV sales and a robust performance in full-size pickups and SUVs.
Results for: GM
Morgan Stanley analyst Adam Jonas downgraded Ford, GM, and Rivian, citing concerns about rising inventories, affordability challenges, and slowing growth in China. However, the firm upgraded several franchise dealers, anticipating a longer life for the internal combustion engine and greater resilience in the face of economic headwinds.
Unifor members at General Motors’ CAMI Assembly and Battery Assembly plants in Ingersoll, Ontario, have ratified a new two-year contract, securing a 15% wage increase for production workers and a 20.25% pay hike for skilled trades. The agreement also includes enhanced income security provisions to support workers during the transition from gas-powered to electric vehicles.
General Motors is recalling nearly 450,000 vehicles in the U.S. due to a potential software malfunction that could prevent a warning light from illuminating in the event of a brake fluid loss. This could increase the risk of an accident, as drivers might unknowingly operate their vehicles with low brake fluid.
Unifor, a Canadian labor union, has reached a tentative collective agreement with General Motors for over 1,300 members at the company’s CAMI Assembly and Battery Assembly facilities in Ingersoll, Ontario. The agreement, which includes improvements in wages, pensions, and job security, will be presented to union members on September 22nd.
Tesla’s Cybertruck has created a unique segment in the electric pickup truck market, challenging traditional automakers like Ford and GM. While Tesla leads in sales, the Cybertruck’s long-term success remains to be seen, as it faces the challenge of proving its durability and appeal against established players.
General Motors (GM) announced plans to manufacture hybrid-flex vehicles in Brazil, capable of running on 100% ethanol or gasoline. This move reflects GM’s commitment to the Brazilian market and its efforts to diversify its vehicle offerings. The company is investing heavily in its Brazilian operations and plans to launch the first hybrid-flex model in 2025.
The electric pickup truck market is heating up with major players like General Motors, Ford, Tesla, and Rivian vying for dominance. While Ford currently leads the market with its F-150 Lightning, GM is entering the fray with its new Sierra EV, aiming to challenge the established players. Meanwhile, companies like Worksport are developing innovative accessories like portable energy systems and solar-powered tonneau covers that are set to further revolutionize the electric pickup landscape.
General Motors is reportedly downsizing its workforce in China and restructuring its operations. The company is facing intense competition from local brands in the world’s largest car market. This move reflects a strategic shift towards electric vehicles, upscale models, and imported premium vehicles.
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.