Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries GM, Ford may see profit hit amid cooling EV demand, US dealer software problems By: FOX Business July 22, 2024 at 18:57 PM EDT GM and Ford may post smaller quarterly profits this week after slowing consumer demand for EVs and a cyberattack on a critical software system used by dealerships disrupted sales. General Motors and Ford may post lower profit when they report quarterly results this week, as the industry's high-stakes bet on EVs fails to pay off, while a cyberattack on a crucial computer network used by dealerships disrupted sales.GM is expected to report a 7.7% drop in second-quarter net income, while Ford is expected to post a 10% drop in profit, according to data from LSEG. GM is scheduled to report its results on Tuesday and Ford the following day.The cyberattack-induced outage at CDK forced the retail technology provider to shut down a key software system used at more than 15,000 U.S. car dealerships in June, a major sales month in the industry.Dealers are estimated to collectively lose about $1 billion because of the outage, according to consultancy firm Anderson Economic Group.GM APPROVES NEW $6B STOCK BUYBACK ON STRONG DEMAND FOR GAS-POWERED VEHICLESA slowdown in growth of EV sales is also making it harder for automakers such as GM and Ford to boost volumes to levels where they can drive down costs and hit profitability sooner."It can't be expected that established vehicle manufacturers, who need to make similar investments that a start-up would in vehicle design and manufacturing facilities, could turn a profit immediately," said Sam Fiorani, vice president at research firm AutoForecast Solutions.STARBUCKS, MERCEDES TEAM UP IN EV CHARGING NETWORK EXPANSIONLegacy American carmakers are also seeing their EV ambitions being throttled by cutthroat competition from Chinese EV makers and Tesla, which have triggered a price war globally.GM last week declined to reiterate its previously announced forecast that it would have one million units of EV production capacity in North America by the end of 2025.Ford had also outlined plans to use a Canadian plant it had earmarked for a future electric vehicle to instead build larger, gasoline-powered versions of its flagship F-Series pickup truck.BIDEN ADMIN RAMPS EV SPENDING IN SWING STATES AS ELECTION NEARSFord previously said it would delay the launch of its new three-row EVs that would be built at its assembly complex in Oakville, Ontario to 2027 from 2025. Both Detroit automakers also reported slower sales growth for the quarter earlier this month.Evercore ISI analysts said they remain positive on GM, particularly over Ford, and expect the Detroit automaker to guide towards the upper end of their prior full-year forecast.GET FOX BUSINESS ON THE GO BY CLICKING HEREInvestors will look for more details on EV plans as both automakers have cited consumer demand as a cause for pushing out forecasts for those vehicles, as well as comments on the impact of outage at CDK. Stock Quote API & Stock News API supplied by www.cloudquote.io Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
GM, Ford may see profit hit amid cooling EV demand, US dealer software problems By: FOX Business July 22, 2024 at 18:57 PM EDT GM and Ford may post smaller quarterly profits this week after slowing consumer demand for EVs and a cyberattack on a critical software system used by dealerships disrupted sales. General Motors and Ford may post lower profit when they report quarterly results this week, as the industry's high-stakes bet on EVs fails to pay off, while a cyberattack on a crucial computer network used by dealerships disrupted sales.GM is expected to report a 7.7% drop in second-quarter net income, while Ford is expected to post a 10% drop in profit, according to data from LSEG. GM is scheduled to report its results on Tuesday and Ford the following day.The cyberattack-induced outage at CDK forced the retail technology provider to shut down a key software system used at more than 15,000 U.S. car dealerships in June, a major sales month in the industry.Dealers are estimated to collectively lose about $1 billion because of the outage, according to consultancy firm Anderson Economic Group.GM APPROVES NEW $6B STOCK BUYBACK ON STRONG DEMAND FOR GAS-POWERED VEHICLESA slowdown in growth of EV sales is also making it harder for automakers such as GM and Ford to boost volumes to levels where they can drive down costs and hit profitability sooner."It can't be expected that established vehicle manufacturers, who need to make similar investments that a start-up would in vehicle design and manufacturing facilities, could turn a profit immediately," said Sam Fiorani, vice president at research firm AutoForecast Solutions.STARBUCKS, MERCEDES TEAM UP IN EV CHARGING NETWORK EXPANSIONLegacy American carmakers are also seeing their EV ambitions being throttled by cutthroat competition from Chinese EV makers and Tesla, which have triggered a price war globally.GM last week declined to reiterate its previously announced forecast that it would have one million units of EV production capacity in North America by the end of 2025.Ford had also outlined plans to use a Canadian plant it had earmarked for a future electric vehicle to instead build larger, gasoline-powered versions of its flagship F-Series pickup truck.BIDEN ADMIN RAMPS EV SPENDING IN SWING STATES AS ELECTION NEARSFord previously said it would delay the launch of its new three-row EVs that would be built at its assembly complex in Oakville, Ontario to 2027 from 2025. Both Detroit automakers also reported slower sales growth for the quarter earlier this month.Evercore ISI analysts said they remain positive on GM, particularly over Ford, and expect the Detroit automaker to guide towards the upper end of their prior full-year forecast.GET FOX BUSINESS ON THE GO BY CLICKING HEREInvestors will look for more details on EV plans as both automakers have cited consumer demand as a cause for pushing out forecasts for those vehicles, as well as comments on the impact of outage at CDK.
