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]

Key Takeaways Ford benefits from Ford Pro growth, strong liquidity, and shareholder-friendly cash returns.Stellantis faces falling sales, shrinking profits, weak cash flow, and heavy tariff costs.Ford stock is up 17% so far in 2025, while Stellantis shares have dropped more than 28% year to date.The auto industry is at a turning point. Legacy automakers are working to defend profits from their gas-powered vehicles while pouring billions into EVs, software and new mobility. At the same time, higher tariffs a ...