Core Viewpoint - General Motors (GM) is set to release its Q2 earnings report, with investors keenly observing the impact of President Trump's auto tariffs on its performance and whether the company will update its full-year guidance [2] Group 1: Tariff Impact and Company Strategy - The Trump administration's 25% tariffs on imported cars and many auto parts remain in effect, creating uncertainty for automakers [2] - In response to tariff risks, GM announced a $4 billion investment in several U.S. factories, including relocating two models previously produced in Mexico to the U.S. and increasing production of a fuel SUV and pickups in Michigan [2] - GM expressed confidence in offsetting at least 30% of the anticipated increase in tariff costs, while lowering its 2025 profit guidance, estimating the impact of tariffs to be between $4 billion to $5 billion [2][5] Group 2: Financial Expectations - According to Wall Street's average expectations, adjusted earnings per share (EPS) are projected at $2.44, with revenue at $46.281 billion, indicating a year-over-year revenue decline of 3.3% and a 20.3% drop in adjusted EPS [4] - GM's revised full-year guidance includes adjusted EBIT of $10 billion to $12.5 billion, down from a previous estimate of $13.7 billion to $15.7 billion, and net income for shareholders revised to $8.2 billion to $10.1 billion from $11.2 billion to $12.5 billion [5] Group 3: Electric Vehicle (EV) Strategy - Investors are also focused on comments regarding electric vehicles (EVs) during the earnings call, especially in light of the new tax law signed by Trump that will eliminate tax credits for new and used EVs after September 30 [6] - GM initially planned to sell only electric vehicles by 2035 but has indicated that future EV strategies will depend on market demand due to lower-than-expected consumer interest [7] - Despite challenges, GM's stock retains a "buy" rating with a target price of $56 per share according to FactSet [7]

Core Viewpoint - Volkswagen's global sales growth has significantly slowed down due to high tariffs in the U.S. and declining demand in key markets [1] Group 1: Sales Performance - In Q2, Volkswagen's global vehicle deliveries increased slightly by 1.2% year-on-year, reaching 2.27 million vehicles [2][4] - In the U.S., Volkswagen's overall sales dropped by 16% year-on-year in Q2, contrasting with a 4.4% growth in Q1, indicating the direct impact of tariff policies on demand [2] - Sales of high-profit brands such as Porsche, Audi, Lamborghini, and Bentley fell by 7.7% year-on-year in Q2, totaling 480,200 units [3] Group 2: Market Dynamics - The U.S. has imposed a 20% tariff on products from the EU, which has adversely affected Volkswagen's North American operations [3] - In China, Volkswagen's electric vehicle sales plummeted by nearly one-third due to intensified competition from local brands like BYD, although overall sales in China grew by 2.8% driven by an increase in gasoline vehicle sales [3] - Despite pressures in major markets, Volkswagen's electric vehicle sales globally rose by 38% year-on-year in Q2, with a remarkable 73% increase in the European market [3] Group 3: Profitability Concerns - Volkswagen's profit in Q1 declined by 40%, raising concerns about profitability due to a structural shift towards lower-margin vehicles [5] - The management emphasized the continuation of electric vehicle strategies and expansion into emerging markets to adapt to changing global market dynamics [5]