Key Takeaways Ford targets an 8% adjusted EBIT margin by 2029 after posting 3.6% in 2025.F expects flat Q1 2026 EBIT, with H1 pressured by aluminum and commodity costs.Ford plans stronger H2 2026 as volumes stabilize and Ford Blue investments rise.Ford Motor Company (F) exited last year as a structurally stronger company, establishing a solid foundation to achieve its long-term target of an 8% adjusted EBIT margin by 2029, per the company’s fourth-quarter 2025 earnings transcript. In 2025, the company repor ...

Core Insights - General Motors is investing tens of millions of dollars to enhance wages and upskill workers at the Fairfax Assembly Plant in Kansas City, preparing for three major vehicle launches [1][5] - The investment aims to strengthen the facility's capabilities and emphasizes the company's commitment to workforce investment for American competitiveness [1][5] Group 1: Investment and Workforce Development - The Fairfax Assembly Plant is currently producing the Chevrolet Bolt and will soon start production on a gas-powered Chevrolet Equinox and a next-generation Buick compact SUV [2] - The investment focuses on equipping employees with new skills for advanced roles, particularly in handling both electric and gas-powered vehicles, while also improving safety practices and product quality [6][11] - GM's commitment includes a broader strategy to support current and future employees as the automotive industry evolves [9] Group 2: Long-term Commitment and Training - Over the past five years, GM has invested $500 million in U.S. manufacturing apprenticeships and upskilling programs, training approximately 2,500 employees annually in advanced manufacturing and electrification [11] - The company has also allocated $66 million in higher education initiatives to assist thousands of employees in obtaining various certificates and degrees [11] - The Fairfax plant director highlighted that the investment in people is not only about vehicle production but also about providing opportunities for employees to build a proud future for their families [7]

Financial Data and Key Metrics Changes - The company reported total revenue of $45 billion for Q4 2025, down approximately 5% year-over-year, primarily due to disciplined production and dealer inventory management [19] - EBIT adjusted was $12.7 billion for the full year, with adjusted automotive free cash flow of $10.6 billion, resulting in a year-end cash balance of $21.7 billion [16][19] - The company achieved a total return of 54% for investors in 2025 [5] Business Line Data and Key Metrics Changes - North America delivered EBIT adjusted of $2.2 billion with margins of 6.1% [23] - GM Financial's full-year EBIT adjusted was $2.8 billion, within guidance, and paid dividends of $1.5 billion to GM [25] - The company led the industry in full-size pickups and SUVs, with strong performance in crossovers [5][7] Market Data and Key Metrics Changes - The U.S. market share reached its highest level in a decade, marking the fourth consecutive year of market share growth [5] - New energy vehicle sales in China reached nearly 1 million units in 2025, representing over half of total sales in the region [25] - The company expects total U.S. SAAR to be in the low 16 million unit range for 2026 [27] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet while investing in growth, with planned capital expenditures of $10-$12 billion annually [17][27] - The strategy includes onshoring production to meet demand for internal combustion engine (ICE) vehicles and enhancing supply chain resiliency [31] - The company is committed to EVs, with plans to reduce costs and improve profitability through new technologies and operational efficiencies [9][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving EBIT adjusted margins in North America of 8%-10% in 2026, supported by improved EV profitability and warranty expense trends [32] - The company anticipates a benefit of $1 billion-$1.5 billion related to right-sizing EV capacity [29] - Management acknowledged uncertainties in the regulatory environment but remains optimistic about future cash flows and profitability [32] Other Important Information - The company incurred $3.1 billion in gross tariff costs for 2025, which was below the predicted range [21] - The company plans to increase its quarterly dividend rate by 20% and has authorized a new share repurchase program of $6 billion [19][18] - The company is expanding its Super Cruise business into international markets and expects to grow OnStar services significantly [10][32] Q&A Session Summary Question: Pricing Assumptions - Management indicated that pricing is expected to be flat to up, primarily reflecting the annualization of 2025 pricing without significant increases planned [37][38] Question: Product Portfolio Dynamics - Management confirmed that the current portfolio is well-positioned, with a strong ICE lineup and plans for hybrid vehicles in key segments [40][41] Question: Inventory Discipline and Cash Flow - Management stated that inventory discipline will continue, contributing to stronger cash generation, with no significant buildup anticipated [47][48] Question: Industrial Bank Approval Impact - Management highlighted that the Industrial Bank will provide a complementary funding source, potentially lowering the cost of funds [51][52] Question: EV Volume Declines and ICE Demand - Management noted uncertainty in EV demand but is prepared to maximize ICE production to meet market needs [90][92] Question: North America Margin Guidance - Management clarified that the North America margin guidance reflects improvements in EV profitability and regulatory costs, contributing to overall EBIT expectations [78][80] Question: Memory Chip Supply and Pricing - Management confirmed that there are no current issues with memory chip supply, and the team is actively managing the situation [82][83]

Core Viewpoint - General Motors is preparing to report its fourth-quarter financial results, which will provide insights into the company's strategy of balancing electric vehicle (EV) growth with a reduction in EV efforts [1] Group 1: Earnings Estimates - Analysts expect GM to report fourth-quarter revenue of $45.79 billion, a decrease from $47.70 billion in the same quarter last year [2] - The anticipated earnings per share (EPS) for the fourth quarter is $2.24, an increase from $1.92 in the previous year [2] - GM has consistently beaten analyst revenue estimates for 14 consecutive quarters and EPS estimates for 13 consecutive quarters [2] Group 2: Analyst Ratings and Price Targets - Several analysts have raised their price targets for GM stock ahead of the earnings report, with Barclays and JPMorgan both increasing their targets from $85 to $100 [3][7] - HSBC raised its price target from $48 to $75 while Citigroup increased its target from $86 to $98 [7] Group 3: Electric Vehicle Strategy - GM has experienced significant growth in electric vehicle sales, with the Chevrolet Equinox and Chevrolet Blazer ranking among the top 10 selling EVs in the U.S. for 2025 [4] - The Equinox saw deliveries increase by over 100% year-over-year, contributing to GM's 13% market share in the U.S. EV market, with unit deliveries up 20% year-over-year [4] - Despite strong EV growth, GM is scaling back its EV efforts due to the ending of the Federal EV tax credit, focusing more on traditional automobiles [4][5] Group 4: Production and Market Strategy - GM is ceasing production of the Chevrolet Bolt, its most affordable EV, to shift production of other vehicles from overseas to the U.S. [5] - CEO Mary Barra has reaffirmed the company's long-term commitment to EV growth, even as global EV deliveries rise by 20% year-over-year [5] - Analysts will be looking for insights on tariffs, profitability, and how the shift in production strategy may help GM navigate tariffs and enhance profitability [6] Group 5: Stock Performance - GM's stock was down 0.3% to $79.43, with a 52-week trading range of $41.60 to $85.18, and has increased by 45.7% over the last year [9]

Group 1 - General Motors Co. will end production of the Chevrolet Bolt EV, its most affordable electric vehicle, and shift Buick production from China to Kansas [1][3] - The production of the gas-powered Chevrolet Equinox will also be moved from Mexico to Fairfax, Kansas, with plans for the Equinox to be produced there by mid-2027 [2][3] - The company has recently relocated to a new headquarters in Detroit, which is expected to enhance collaboration among teams [4] Group 2 - CEO Mary Barra reaffirmed GM's commitment to electric vehicles despite laying off over 3,400 workers and incurring a $6 billion charge related to EVs, in addition to a previously reported $1.6 billion charge [5] - GM's stock price increased by 0.26% to $81.14 at market close and saw a slight rise to $81.15 in after-hours trading [6]

Core Insights - General Motors is shifting vehicle production from China and Mexico to a factory in Kansas, ending the production of the Chevrolet Bolt EV at the Fairfax Assembly Plant [1][4] - The economic and political landscape, influenced by the Trump administration's tariff policies and the cessation of the federal EV tax credit, has increased production costs for vehicles made in China and Mexico [2] - The production of the 2027 Chevy Bolt EV is expected to conclude in approximately 18 months, with its price set at $29,990, making it one of the most affordable EVs in the U.S. market [3] Production Changes - The next-generation Buick Envision will be produced at the Kansas facility starting in 2028, while the gas-powered Chevrolet Equinox will transition from Mexico to Kansas by mid-2027 [4] - GM has indicated that the Bolt will have a limited production run, with plans already in place for the Equinox to replace it at the Fairfax plant [5] Future Investments - GM has committed to future investments in the Fairfax Assembly Plant for the development of new affordable EVs, although the timeline for these investments remains uncertain [5]

Core Viewpoint - General Motors is relocating the production of a Buick compact SUV from China to the U.S. to enhance domestic manufacturing and support U.S. jobs, with production set to begin in 2028 at the Fairfax Assembly plant in Kansas City, Kansas [1][4]. Group 1: Production Shift - The next-generation Buick compact SUV will be manufactured in the U.S. for domestic sales, while production in China may continue for international markets [2][3]. - This decision aligns with the increasing pressure from the U.S. government to onshore production amid rising tensions between the U.S. and China, including tariffs on vehicles [3]. Group 2: Investment and Job Support - GM's move to onshore production is part of a broader strategy to strengthen its domestic manufacturing footprint, building on $5.5 billion in new investments announced for U.S. manufacturing sites over the past year [4]. - The compact Buick SUV will be produced alongside the gas-powered Chevrolet Equinox at the Kansas facility, with Equinox production scheduled to start in 2027 [5].

Core Insights - S&P Global Mobility announced the winners of its 30th annual Automotive Loyalty Awards, with General Motors and Tesla receiving the top awards for customer retention [1][2] Group 1: Awards and Winners - General Motors won the 'Overall Loyalty to Manufacturer' award for the 11th consecutive year [2][8] - Tesla secured the 'Overall Loyalty to Make' award for the fourth consecutive year [2][8] - The awards were based on an analysis of 13.6 million new retail vehicle registrations in the U.S. from October 2024 through September 2025 [2][10] Group 2: Market Analysis - The analysis indicates that the market is rewarding manufacturers with broad portfolios, emphasizing the importance of customer retention as a performance indicator [3][4] - The competition for awards was intense, with several categories decided by less than one percentage point, highlighting the significance of each win [4] Group 3: Strategies for Success - Product redesigns were identified as a key driver of loyalty, exemplified by Mini's win for 'Most Improved Make Loyalty' due to updates to its Cooper and Countryman models [4] - Chevrolet Equinox achieved 'Overall Loyalty to Model' following a redesign that resulted in a four-percentage-point increase in model loyalty year-over-year [4] Group 4: Brand-Specific Insights - Subaru's award for 'Overall Loyalty to Dealer' was attributed to strong performance in East Coast markets, where dealer loyalty reached 43.7%, significantly above the national average of 37.9% [5] - Tesla's strategy of targeted market appeal led to high retention rates among Asian (63.6%) and Hispanic (61.9%) households, surpassing national averages [6]

Core Insights - Major American car manufacturers, including General Motors (GM), Ford, and Stellantis, reported significant increases in domestic vehicle sales, benefiting from favorable federal policy changes [2][4][6] - GM's stock surged approximately 15% following its strong third-quarter results, while Ford and Stellantis also experienced notable stock price increases [3][7] Sales Performance - GM and Ford's domestic sales rose by 8% year-over-year in the third quarter, while Stellantis saw a 6% increase [4] - GM's Chevrolet Equinox sales nearly doubled year-over-year, and Ford's Expedition sales increased by over 47% [5] Federal Policy Impact - Recent federal policy changes, including eased tariffs on auto parts and relaxed fuel emissions standards, are expected to save manufacturers billions [2][6] - GM anticipates a reduction in its annual tariff burden by about $500 million due to expanded tariff exemptions, and potential savings of around $1 billion annually in federal emissions penalties [6] Market Conditions - The auto market is performing better than expected, with strong financial markets contributing to consumer spending in the automotive sector [5][6] - The competitive landscape has limited car companies' ability to pass on tariff costs, but recent policy changes may provide some leeway for maintaining prices [5]

Financial Data and Key Metrics Changes - Total company EBIT-adjusted was $3.4 billion, down $700 million year over year, impacted by a gross tariff of $1.1 billion [16][17] - Adjusted automotive free cash flow was $4.2 billion, aided by $300 million in cash tariff offset reimbursements [17] - North America delivered Q3 EBIT-adjusted margins of 6.2%, with record crossover deliveries and strong performance of full-size pickups and SUVs [17][18] Business Line Data and Key Metrics Changes - EV sales reached record levels in Q3 with 67,000 deliveries, securing a 16.5% share in the U.S. EV market [18] - Warranty expense was a $900 million headwind year over year, indicating a need for improvement [19] - GM Financial posted Q3 EBIT-adjusted of $800 million, continuing to deliver value for customers and dealers [20] Market Data and Key Metrics Changes - In the U.S., GM achieved a market share of 17%, up 50 basis points year over year [14] - GM China market share grew 30 basis points year over year to 6.8%, with equity income rising to $80 million [20] Company Strategy and Development Direction - The company is focused on returning North America to historical EBIT margins of 8% to 10% by improving EV profitability and managing fixed costs [11][25] - GM is investing in new battery technologies and expanding U.S. production capacity to enhance competitiveness [5][10] - The company plans to maintain capital discipline while addressing production and creating new jobs in the U.S. [6][25] Management's Comments on Operating Environment and Future Outlook - Management raised full-year guidance based on strong performance and ongoing disciplined execution [4][21] - The company expects EV demand to soften in the near term but remains committed to improving EV profitability [18][46] - Management anticipates 2026 to be even stronger than 2025, driven by various operational improvements [24][22] Other Important Information - A $1.6 billion special item charge was recorded in Q3, primarily related to the transition of Orion Assembly from EV to ICE production [8][9] - The company is actively managing supply chain challenges, particularly concerning chip supply from China [6][64] Q&A Session Summary Question: Can you dive into the updated tariff disclosure? - The President's announcement expanded the MSRP tariff offset, allowing for more eligible parts, leading to savings on tariffs [28] Question: What are the preliminary high-level industry or macro factors for 2026? - It is too early to speculate on 2026, but the company has tools to lower costs and drive better performance [31] Question: How will shifting emissions regulations affect ICE vehicle sales? - The company anticipates being able to sell internal combustion engine vehicles for longer due to changing regulations [35] Question: What is the outlook for EV profitability? - The company sees EVs as a priority and is focused on improving profitability through cost reductions and maintaining discipline in production [46][48] Question: What is the status of GM Financial's portfolio performance? - The portfolio performance remains resilient, with a strong mix of prime customers and stable charge-offs [69]