Record Truck Profits, a $7 Billion EV Write Off, and a Market That Doesn't Care

Group 1 - General Motors (GM) is down 9.61% year-to-date at $73.34 after incurring $7.2 billion in Q4 electric vehicle (EV) charges [1] - Ford (F) fell 7.18% year-to-date to $12.06 after $10.7 billion in Q4 EV impairments, with projected losses of $4 to $4.5 billion for 2026 [1] - Oil prices reached $100 per barrel, coinciding with GM and Ford's significant write-offs to exit EV capacity, creating a strategic dilemma for both companies [1] Group 2 - GM's Q4 EBIT-adjusted was $2.8 billion, a 13.3% increase year-over-year, with an EBIT margin expanding to 6.1% from 5.3% [1] - GM's North American plants operated at 113.7% two-shift utilization, holding a 17.2% share of the U.S. truck market [1] - Management raised the dividend by 20% to $0.18 per share and authorized a new $6 billion buyback, with 2026 guidance for adjusted EPS of $11 to $13 [1] Group 3 - Fleet sales as a share of total volume increased to 19.6% from 16.9%, indicating a lower-margin mix shift that pressures profitability [1] - GM's full-year 2025 net income fell 55.11% year-over-year to $2.70 billion, despite a significant rise in operating cash flow [1] - GM reported a net loss of $3.3 billion for Q4 due to over $7.2 billion in special charges related to EV capacity realignment [1] Group 4 - Ford is down 8.6% year-to-date at $11.98 after absorbing $10.7 billion in Model e asset impairments in Q4, with additional projected EV losses for 2026 [1] - Despite achieving its best U.S. market share in six years, Ford trades at a forward sales multiple of 0.28 compared to the industry average of 3.29 [1] - Both GM and Ford are generating real cash but are not receiving adequate market credit for it, as the market awaits clarity on the costs of the EV transition [1]