General Motors (GM) and Ford are anticipated to report lower profits when they release their quarterly results this week, reflecting the challenges in the electric vehicle (EV) sector and the impact of a significant cyberattack on a key dealership network.
GM is projected to report a 7.7% decline in second-quarter net income, while Ford is expected to see a 10% drop in profit, according to LSEG data. GM is set to release its results on Tuesday, followed by Ford the next day.
The recent cyberattack on CDK, a crucial retail technology provider, forced the shutdown of a major software system used by over 15,000 U.S. car dealerships in June, a critical sales month for the industry. Dealers are estimated to have lost around $1 billion due to the outage
Additionally, the slowdown in EV sales growth is complicating efforts for automakers like GM and Ford to increase production volumes, which are necessary to reduce costs and achieve profitability. “It’s unrealistic to expect established vehicle manufacturers, who are making substantial investments in vehicle design and manufacturing facilities, to turn a profit immediately,” said Sam Fiorani, vice president at AutoForecast Solutions.
Legacy U.S. carmakers are also facing intense competition from Chinese EV manufacturers and Tesla, which has ignited a global price war. GM recently refrained from reaffirming its earlier forecast of achieving one million EV units of production capacity in North America by the end of 2025. Similarly, Ford has decided to repurpose a Canadian plant originally planned for EV production to instead manufacture larger gasoline-powered versions of its popular F-Series trucks. Ford has also delayed the launch of its new three-row EVs, moving the expected start date from 2025 to 2027. Both automakers have reported slower sales growth for the quarter.
Despite these challenges, Evercore ISI analysts remain optimistic about GM, particularly in comparison to Ford, and expect GM to provide guidance toward the upper end of its previous full-year forecast.
Investors will be keen to hear more about the companies’ EV plans, especially given the adjustments in forecasts related to consumer demand, and to understand the impact of the CDK outage on their operations.
 and Ford are anticipated to report lower profits when they release their quarterly results this week, reflecting the challenges in the electric vehicle (EV) sector and the impact of a significant cyberattack on a key dealership network...){kind=link}