This story was originally published on WardsAuto. To receive daily news and insights, subscribe to our free daily WardsAuto newsletter. Honda Motor Co. cut its profit forecast for the year ending March 31, 2026 after posting a 24.8% drop in second-quarter operating profit blaming one-off expenses related to electric vehicles, semiconductor shortages and U.S. tariffs. The company cut its operating profit forecast for 2026 by 21% to 550 billion yen ($3.65 billion) from 700 billion yen and has cut its 2030 gl ...

General Motors reported robust third-quarter results for 2025 as Wall Street cheered revenue that decreased only slightly year over ear. The company beat consensus estimates for both revenue and earnings per share (EPS), and its stock soared nearly 15% in same-day trading as traders seemed to breathe a sigh of relief. “In the U.S., we achieved our highest third-quarter market share since 2017 with strong margins, and our restructured China business was profitable once again,” CEO Mary Barra said in a letter ...

Core Viewpoint - General Motors has raised its financial outlook for the year while slightly reducing the expected impact from tariffs, amidst a challenging electric vehicle market [1][2]. Financial Outlook - The company now anticipates its annual adjusted core profit to be between $12 billion and $13 billion, an increase from the previous estimate of $10 billion to $12.5 billion [2]. - The updated impact of tariffs on the bottom line is now projected to be between $3.5 billion and $4.5 billion, down from the earlier estimate of $4 billion to $5 billion [2]. Electric Vehicle Strategy - General Motors incurred a $1.6 billion charge due to changes in its electric vehicle strategy, with the removal of a $7,500 tax credit for battery-powered models at the end of September [3]. - CEO Mary Barra indicated that future charges related to electric vehicles are expected, but the company aims to reduce EV losses by addressing overcapacity [3]. Revenue and Sales Performance - Revenue for the quarter ending in September slightly decreased to $48.6 billion compared to the previous year [4]. - Despite tariff uncertainties, US car sales increased by 6% in the third quarter, with consumers opting for more expensive models and features [4]. Tariff Mitigation Efforts - General Motors plans to mitigate 35% of its anticipated tariff impact, aided by a new program allowing credits for US-assembled vehicles [5][6]. - The MSRP offset program is expected to enhance the competitiveness of US-produced vehicles over the next five years [6]. Investment and Market Dynamics - The company is increasing investments in the US to counteract tariffs, with a $4 billion investment announced for three facilities in Michigan, Kansas, and Tennessee [7]. - Other automakers, such as Stellantis, are also planning significant investments in the US, with Stellantis announcing a $13 billion investment over the next four years [8]. Electric Vehicle Market Challenges - Although electric vehicle sales were strong in the third quarter, they still represented less than 10% of General Motors' overall sales [8]. - The company initially planned to offer a program to allow dealers to continue providing tax credits on EV leases but has since retracted this initiative due to political backlash [9].

Core Insights - General Motors (GM) is implementing a multi-faceted strategy to enhance profitability, which includes reducing tariff exposure, improving electric vehicle (EV) profitability, and expanding software services, leading to an increased profit guidance of $12 billion to $13 billion, up from $10 billion to $12.5 billion [3] Software Services - GM's software services, including OnStar and Super Cruise, have generated nearly $2 billion in revenue this year, with OnStar subscribers increasing by 34% year-over-year and Super Cruise customers nearly doubling [4] - The company anticipates robust double-digit revenue growth through the end of the decade, with growth margins around 70% [4] Production Strategy - GM is increasing domestic production to mitigate tariff impacts and to produce more full-sized gas-powered trucks and SUVs for the U.S. market, as the company reassesses its EV strategies in light of potential changes in emissions standards by the EPA [5] - The company expects internal combustion engine (ICE) volumes to remain high for an extended period, with plans to retool its Lake Orion, Michigan plant to produce new Cadillac Escalade and full-size pickup trucks by early 2027 [6] Financial Performance - GM reported a 57% year-over-year decline in Q3 net income, primarily due to $1.1 billion in tariff costs and a revised EV production strategy amid cooling demand [7] - Despite the quarterly setback, GM's CEO expects that actions to improve manufacturing capacity and EV battery production will restore EBIT margins to historical levels of 8% to 10% [7]

Core Viewpoint - General Motors has raised its financial outlook for the year while reducing the expected impact from tariffs, indicating a more stable trade environment and challenges in the electric vehicle market and supply chain [1][2]. Financial Outlook - The company now anticipates its annual adjusted core profit to be between $12.0 billion and $13.0 billion, an increase from the previous estimate of $10.0 billion to $12.5 billion [2]. - The updated impact of tariffs on the bottom line is now projected to be between $3.5 billion and $4.5 billion, down from the earlier estimate of $4 billion to $5 billion [2]. Market Response - Shares of General Motors rose by 6% in premarket trading following the updated financial outlook [2]. Electric Vehicle Strategy - Earlier in the month, the company recorded a $1.6 billion charge due to changes in its electric vehicle strategy [3]. - The expiration of a $7,500 tax credit for battery-powered models and the loosening of vehicle emissions regulations have contributed to the company's challenges [3]. - CEO Mary Barra indicated that future charges related to electric vehicles are expected, but the company aims to reduce EV losses by addressing overcapacity, with a focus on improvements by 2026 and beyond [3]. Revenue Performance - Revenue for the quarter ending in September slightly decreased to $48.6 billion compared to the same period last year [4].

Core Insights - Ferrari's stock experienced a significant decline following the company's updated revenue guidance for 2025 and 2030, with a 15% drop on Thursday, marking its worst trading day ever [1][3][7] - The company's 2030 revenue forecast of approximately 9 billion euros fell short of Wall Street's consensus estimate of around 10 billion euros, leading to investor disappointment [3][4][6] - Ferrari's adjusted EBITDA for 2030 is projected to be 3.6 billion euros, reflecting a lower annual growth rate of 6% compared to the previously anticipated 10% [4][7] Revenue Guidance - For 2025, Ferrari estimates revenue will be at least 7.1 billion euros, a slight increase from the previous estimate of over 7 billion euros [3][6] - The 2030 revenue outlook of 9 billion euros is significantly below analysts' expectations, contributing to the stock's decline [3][6] Electric Vehicle Strategy - Ferrari announced a reduction in its electric vehicle (EV) ambitions, stating that only 20% of its vehicles will be EVs by 2030, down from the previously expected 40% [5][7] - The company plans to continue focusing on hybrids and internal combustion engine (ICE) powertrains, which will account for 40% of its models in 2030 [5][7] Market Reaction - Investors reacted negatively to the combination of lower revenue guidance, disappointing EBITDA growth projections, and a scaled-back EV strategy, resulting in a notable drop in share price [1][6][7] - The upcoming third-quarter results are anticipated to provide further insights into Ferrari's performance and strategy [7]

Core Viewpoint - Ford is shifting its electric vehicle (EV) strategy towards affordability, moving away from high-priced models to a new platform designed for lower-cost EVs, which could significantly alter its position in the EV market if successful [1][3][21]. Group 1: New Strategy and Product Launch - The new strategy is centered around the Ford Universal EV Platform, which will support a range of lower-cost electric models, starting with a midsize electric pickup priced around $30,000, with production set to begin in 2027 [3][11]. - This initiative is backed by a $5 billion investment aimed at creating nearly 4,000 jobs at the Louisville Assembly Complex in Kentucky [3][11]. - Ford's CEO, Jim Farley, has referred to this affordable EV push as the company's next "Model T moment," indicating its potential significance in the automotive industry [4]. Group 2: Production Efficiency and Cost Management - The new platform aims to streamline production by reducing parts by 20%, fasteners by 25%, and plant workstations by 40%, which will cut assembly times by approximately 15% [5]. - The focus on lithium iron phosphate (LFP) batteries, which will be produced in the U.S., is expected to lower costs and enhance vehicle interior space [4][11]. Group 3: Challenges and Market Position - Ford's EV division has incurred approximately $12 billion in losses over the past two and a half years, including $2.17 billion in the first half of this year [7][11]. - In contrast, General Motors has adopted a more gradual approach to EV production, resulting in higher sales figures and a broader range of electric models [8]. - Chinese competitor BYD has surpassed Ford in EV sales, emphasizing the need for Ford to adapt its strategy to remain competitive [9][13]. Group 4: Financial Implications and Market Outlook - Ford has faced additional financial pressures from costly recalls and repairs in its gasoline-powered lineup, which have impacted profits [10][12]. - The company has absorbed $800 million in tariff-related costs in the second quarter alone, with expectations of a net $2 billion tariff hit for 2025 [12]. - Despite these challenges, Ford's Pro division continues to perform well, and hybrid sales are on the rise, providing some stability [14]. Group 5: Investment Considerations - Ford's stock has increased by around 10% over the past year, but it still lags behind the industry average [17]. - The company trades at a forward price-to-earnings ratio of 0.27, which is below the industry average, indicating potential value for investors [18]. - The success of Ford's new EV strategy will be crucial for its long-term profitability and market position, with a focus on proving the economics of its affordable EV program before further scaling [21][22].

Financial Data and Key Metrics Changes - The company reported a record revenue of $50 billion for Q2 2025, with an adjusted EBIT of $2.1 billion, reflecting year-over-year improvement in costs [8][32] - The full-year adjusted EBIT guidance was updated to a range of $6.5 billion to $7.5 billion, net of tariffs [9][38] - Adjusted free cash flow was solid at $2.8 billion, with a strong balance sheet showing over $28 billion in cash and $46 billion in liquidity [36][37] Business Line Data and Key Metrics Changes - Ford Pro's revenue grew 11% to nearly $19 billion, with a 12.3% EBIT margin driven by a strong product lineup and disciplined pricing [33] - Model E revenue more than doubled to $2.4 billion, with margins improving nearly 44 points due to a favorable product mix [34] - Ford Blue earned nearly $700 million in the quarter, reflecting profitable market share gains and higher net pricing [35] Market Data and Key Metrics Changes - In the U.S., Ford's sales grew 7 times faster than the industry, with market share up 1.7 points sequentially [20] - The company sold more electrified vehicles than its two main domestic rivals combined, with EVs and hybrids making up close to 14% of the U.S. mix [21] - Outside the U.S., Ford gained market share in key regions such as Canada, Europe, South America, and the Middle East [23] Company Strategy and Development Direction - The company is shifting capital towards Ford Pro, reallocating resources from future EV programs to accelerate growth in high-margin services [10] - Ford aims to enhance its product lineup with a focus on trucks and iconic products, while also investing in low CO2 emissions technologies [14] - The company is committed to improving vehicle quality and reducing warranty costs, with a focus on achieving world-class vehicle quality [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of tariffs, estimating a net headwind of about $2 billion for the year, while expressing confidence in the company's cycle plan [13][39] - The management team emphasized the importance of capital efficiency and cost improvement, with a strong balance sheet providing flexibility to invest through economic downturns [38][40] - The company is optimistic about the future, with a focus on sustainable improvements in warranty and material costs [44] Other Important Information - The company announced a regular dividend of 15 cents per share, payable on September 2, reflecting its commitment to return capital to shareholders [38] - Ford's transformation journey is well underway, with a focus on building a higher growth, higher margin, and more capital-efficient business [32] Q&A Session Summary Question: Drivers of guidance change and improvement - Management noted that the guidance reflects strong improvement in the business, particularly in cost areas, despite absorbing larger tariffs [42][43] Question: Sustainability of market share - Management expressed confidence in sustaining market share gains into the second half of the year, supported by a strong product portfolio [61][62] Question: Balancing emissions policy and EV technology - Management highlighted the importance of transforming engineering and supply chain processes to remain competitive against global OEMs, particularly Chinese manufacturers [70][71] Question: Impact of tariffs and compliance credits - Management discussed ongoing negotiations with the administration to simplify tariffs and reduce liabilities, emphasizing the potential upside for the company [83][84] Question: Electrification initiatives and regional commitments - Management indicated a focus on partnerships for EVs and a streamlined product lineup to balance investments across different regions [99]