Former Ford CEO: Expect gradual growth in EV market, but not at pace automakers thought

Core Insights - Ford reported strong earnings, beating expectations on both revenue and profit, but lowered guidance due to operational disruptions caused by a fire at their primary aluminum supplier's manufacturing plant [1][3][13] - The automotive industry is currently focused on gauging demand for both internal combustion and electric vehicles (EVs), adjusting pricing strategies, and aligning cost structures amid increasing global competition [2][4] Financial Performance - Ford and GM both had strong quarterly results, with significant sales in trucks and SUVs contributing to positive market reactions [3][7] - Ford's stock saw a notable increase of 9.5% following the earnings report, indicating investor confidence despite the challenges faced [14] Industry Challenges - The automotive supply chain, particularly among smaller tier 2 to tier 4 suppliers, is under significant strain due to recent challenges such as COVID-19 and semiconductor shortages, leading to some high-profile bankruptcies [8][9] - The industry is experiencing a gradual growth in the EV market, although at a slower pace than previously anticipated, resulting in impairment charges for major automakers [6][12] Market Dynamics - The government has extended tariff relief on imported parts, providing an advantage to domestic manufacturers like Ford and GM, especially for medium and heavy-duty trucks [3][4] - There is a concern regarding the potential impact of rising subprime delinquencies, although they currently represent a small percentage of the overall automotive financing market [11][12] Supply Chain Issues - The fire at the aluminum supplier's plant is expected to have a less severe impact than initially feared, with operations anticipated to resume by the end of the year [13] - A new semiconductor issue is emerging, which could pose significant challenges for the industry, potentially more impactful than previous shortages [13]