Describing an unsteady trajectory as a roller-coaster ride has become cliché, but there is genuinely no other way to describe auto sales in 2025. This year has been an anomaly for the car industry for many reasons, but the top issue has been tariffs and their impact on U.S. car buyers. U.S. 2025 new-vehicle sales forecast GM: 2.83 million vehicles (+5.1% year over year); 17.3% market share Toyota: 2.52 million vehicles (+8.4% YoY); 15.5% market share Ford: 2.18 million vehicles (+5.6% YoY); 13.4% mark ...

Core Viewpoint - General Motors is on track to become the top U.S.-traded automaker stock of 2025, experiencing its best performance since emerging from bankruptcy in 2009 [1] Group 1: Stock Performance - GM stock has increased over 55% to a record of more than $80 per share, surpassing last year's annual increase of 48.3% [2] - The stock has seen a nearly 13% increase this month, contributing to five consecutive months of gains [2] - GM's stock performance is notably better compared to competitors, with Tesla up 17%, Ford up 34%, and Stellantis down 15% [4] Group 2: Executive Insights - CEO Mary Barra has stated that GM's strong financial results, innovative technology, and customer experience will differentiate the company in a competitive market [3] - Barra has significantly reduced her stake in the company, selling or exercising options on approximately 1.8 million shares valued at over $73 million this year [3] - As of September, Barra still holds over 433,500 shares valued at more than $35 million, primarily from options and stock awards [3]

Group 1 - Ford Motor Company has seen a significant share price increase of 35% through December 24, making it an attractive option for investors despite its low valuation [1] - The stock is trading at a forward price-to-earnings multiple of 9.5, which is considered cheap, and offers a dividend yield of 4.5%, appealing to income investors [2][6] - Over the past decade, Ford shares have only produced a total return of 64%, which is significantly lower than the overall market performance, raising concerns about long-term investment potential [3] Group 2 - The company faces challenges such as low growth prospects, compressed profit margins, high capital expenditure requirements, intense competition, and demand sensitivity to economic cycles, which are factors that long-term investors should be cautious of [4] - Analysts from The Motley Fool Stock Advisor have identified ten stocks they believe are better investment opportunities than Ford, suggesting that Ford may not be the best choice for current investment [5][6]

Group 1 - LG Energy Solution has announced the termination of a supply contract with US-based Fraunhofer Battery Power Systems, valued at 3.9 trillion KRW (approximately 19 billion RMB) [1] - Just a week prior, LG Energy Solution lost a battery supply order worth 9.6 trillion KRW (approximately 45.7 billion RMB) due to Ford's significant adjustment of its electric vehicle strategy [2] - The recent announcements indicate that LG Energy Solution has lost a total of 13.5 trillion KRW (approximately 65.7 billion RMB) in potential revenue within a span of less than 10 days, which is equivalent to half of the company's total revenue of 25.62 trillion KRW last year [2] Group 2 - Ford has announced plans to transform its unfinished electric vehicle battery factory into a storage business, leveraging technology licensed from CATL to capitalize on AI power demand opportunities [2] - Another South Korean battery company, SK On, has also terminated its joint venture with Ford this month, highlighting the challenges faced by the automotive industry [2]

Core Viewpoint - Ford Motors has experienced a 35% increase in share price in 2025, but the stock remains below $15, a level it has not reached since July 2023 [1] Financial Impact - Ford announced an estimated $19.5 billion loss due to the repositioning of its EV program, including the cancellation of the F-150 Lightning, which will affect earnings in Q4 FY2025, all of FY2026, and $5.5 billion will carry over into FY2027 [3][8] - The company incurred $2.8 billion in warranty costs in the first two quarters of 2025, with a $300 million year-over-year increase in Q2, although there was a decrease of $459 million year-over-year in Q3 [5] Operational Challenges - Ford is facing a crisis with warranty costs due to a surge in recalls, leading the nation with 35% of total recalls in 2025 [4] - A recent recall of approximately 273,000 vehicles was announced due to a parking malfunction, indicating ongoing operational issues [5] Valuation Metrics - Ford's trailing P/E ratio is 11.4 and forward P/E is 9.4, significantly lower than the S&P 500's 31.2, suggesting continued earnings pressure [6] Investment Considerations - Analysts recommend avoiding investment in Ford at this time, as it was not included in a list of top stock recommendations by The Motley Fool Stock Advisor [7][8]

Core Viewpoint - Ford Motor Company is pivoting away from full-electric vehicles (EVs) and reallocating investments towards higher-return opportunities, which includes a significant $19.5 billion restructuring plan aimed at driving profitable growth [3][4][6]. Group 1: Company Actions - Ford announced a $19.5 billion restructuring plan, which includes a pullback in full-electric vehicle investments and a focus on hybrid vehicles and other profitable segments [3][4][6]. - The company expects to incur approximately $19.5 billion in special charges, primarily in the fourth quarter, with an additional $5.5 billion through 2027 [6]. - Ford plans to repurpose its EV battery factory in Kentucky to produce batteries for data centers and energy infrastructure, investing around $2 billion over the next two years [10]. Group 2: Market Strategy - The automaker is shifting its focus from full-electric vehicles to hybrids and smaller, more affordable EVs, aiming for about 50% of its global volume to consist of hybrids and extended-range EVs by the end of the decade, up from 17% in 2025 [8]. - Ford's new strategy is a response to changing market conditions and aims to create a more resilient and profitable business model [8][12]. Group 3: Financial Outlook - Ford's Model e business is expected to show annual improvements starting in 2026, with a path to profitability by 2029, following losses exceeding $5 billion in 2024 [9]. - The company's current market capitalization stands at $53 billion, with a gross margin of 7.58% and a dividend yield of 4.51% [9].

Core Viewpoint - Ford is shifting its focus from producing large electric vehicles to a new battery storage business, utilizing lower-cost lithium iron phosphate (LFP) batteries to power data centers and assist in balancing grid loads [3]. Group 1: New Business Strategy - Ford plans to invest approximately $2 billion (around 14.125 billion RMB) in the new battery storage business over the next two years, aiming for an annual production capacity of 20 GWh starting in 2027 [4]. - The company will repurpose its existing manufacturing facilities in Kentucky to produce LFP batteries, which are licensed from China's CATL, and will also manufacture battery storage system modules and 20-foot DC container storage systems [4][5]. - The primary market for this new business will be commercial grid customers, followed by data centers, with plans to eventually introduce home storage products [4]. Group 2: Market Position and Competition - Ford is not the only automaker entering the energy storage sector; Tesla has been selling storage products for the past decade, deploying approximately 10 GWh each quarter, while General Motors has also launched battery storage products for residential and commercial users [4]. - Lisa Drake, Ford's Vice President of Technology Platform and Electric Vehicle Systems, emphasized that the preferred technology among customers is containerized storage systems using LFP prismatic cells, making Ford's entry into this market a natural strategic extension [4]. Group 3: Production Adjustments - The BlueOval Battery Park in Michigan is still on track to begin mass production of LFP batteries in 2026, although the plans have been adjusted to include smaller amp-hour cells for residential energy storage solutions, indicating a broader storage strategy beyond commercial clients [4]. - The Michigan facility has undergone multiple adjustments, including a $3.5 billion (approximately 24.719 billion RMB) investment announced in February 2023, which was later reduced to a capacity of 20 GWh, a decrease of about 43% from the initial plan [5].

Core Insights - The electric vehicle (EV) market is experiencing a significant downturn, with major automakers like Ford taking substantial write-offs and pivoting towards hybrid models instead of fully electric vehicles [3][9][11] - The initial optimism surrounding EVs may have been premature, as the technology and cost structures have not yet aligned for mass-market adoption [4][9][15] - Automakers are recalibrating their strategies to align with current market realities and consumer demand, indicating that the transition to EVs will be a longer process than previously anticipated [9][11][15] Industry Trends - Ford has announced a $19.5 billion write-off related to its EV division, signaling a shift in focus towards hybrids and a delay in profitability expectations for its EV segment until 2029 [9][11] - The expiration of the $7,500 federal consumer tax credit has further complicated the EV market, impacting sales and consumer confidence [11][9] - The current market for EVs is characterized by high costs and limited consumer adoption, particularly among cost-conscious buyers [9][15] Company Strategies - Ford and GM are adjusting their production lines to be more flexible, allowing for the manufacturing of hybrids alongside traditional vehicles, which is seen as a more profitable strategy in the short term [13][14] - Automakers are not abandoning EVs entirely but are recognizing the need to focus on hybrids and internal combustion engine vehicles to maintain profitability [14][15] - The market is witnessing a divergence between traditional automakers, which are leveraging their established manufacturing capabilities, and newer entrants like Rivian, which are struggling with profitability and cash flow [22][26] Market Dynamics - The EV market is still expected to grow, particularly in regions like China, but the pace of growth has slowed compared to earlier projections [15] - Investors are advised to approach the EV market with caution, as the hype surrounding certain companies may not be justified by their current financial performance [21][22] - The complexities of the automotive supply chain and the challenges faced by newer companies highlight the importance of scale and established infrastructure in achieving profitability [26][27]

Core Viewpoint - Ford Motor Company has recorded an unprecedented number of recalls in 2025, surpassing previous industry records and highlighting ongoing quality issues across various vehicle models [1][8]. Recall Statistics - In 2025, Ford logged 152 recalls, significantly higher than Honda's 53, Forest River's 32, General Motors' 27, and International Motors' 26 [2]. - By October 2025, Ford had already issued more than 103 safety recalls, exceeding the previous annual record of 77 recalls set by General Motors in 2014 [8][9]. Specific Recalls - A recent recall involved a software error in certain 2020 Escape Hybrid and 2022 to 2024 Maverick Hybrid vehicles, affecting 87 units [2]. - Additional recalls included an instrument panel cover issue in approximately 6,897 2025–26 Maverick pickups and a headlight failure risk in over 45,000 2025 to 2026 Mustang Mach-E vehicles [3]. - In October, Ford recalled over 1.4 million vehicles due to rearview camera issues in various models manufactured from 2015 to 2020, which could display distorted or blank images when in reverse [7][11]. Company Response and Strategy - Ford emphasized its commitment to vehicle quality and customer safety, stating that the number of recalls reflects its strategy to quickly identify and resolve hardware and software issues [13][15]. - The company has more than doubled its team of safety and technical experts over the past two years to enhance its recall management and safety protocols [16].

Core Insights - The automotive industry is experiencing a shift in investor sentiment due to advancements in technology, including autonomous driving and AI integration [1][2] Rivian - Rivian has developed its own AI chip to enhance autonomous driving capabilities, which can process 5 billion pixels per second [4][5] - The new Autonomy+ driver-assistance package will be priced at $2,500 upfront or $49.99 per month, significantly cheaper than Tesla's equivalent offering [6] - Despite these advancements, Rivian's developments may not significantly alter the investment thesis until further revenue streams are established [7][8] Ford - Ford plans to take a $19.5 billion charge to pivot from full electric vehicles to a focus on hybrids and more affordable EVs, expecting hybrids and EVs to make up 50% of global volume by 2030, up from 17% this year [9][10] - The company is also entering the battery energy storage systems market, repurposing a plant in Kentucky and investing approximately $2 billion over the next two years [11][12] - Ford's strategic pivot towards hybrids and energy storage reflects a response to market demand, which could be beneficial for investors [15]