While Ford's Q4 may have disappointed some investors, the silver lining is that Ford Pro is positioned for growth.Ford Motor Company (F +1.55%), General Motors (GM +1.40%), and Stellantis (STLA 0.71%) certainly have much in common as automakers, especially considering their core profit engine, North America. Despite so much in common, the three stocks have traded wildly differently over the past three years with GM nearly doubling, Ford remaining largely flat with a 9% gain, and Stellantis shedding roughly ...

The last couple of years have been a bit of a whiplash effect with automakers such as Ford Motor Company (NYSE: F) and General Motors (NYSE: GM), among many others, announcing billions and billions of electric vehicle (EV) projects and ambitions. Those strategies quickly reversed when the U.S. EV industry was slower to gain traction than hoped. Now, automaker attention is focused more on hybrids. While that might not seem like an important development, there's one huge thing for investors to know about t ...

Core Insights - Honda Motor Company reported a 2.2% decline in global revenues to JPY 15,975.6 billion (US$104.4 billion) for the first three quarters of FY26, with significant drops in operating profit and net profit attributed to US import tariffs and costs related to its US battery electric vehicle (BEV) program [1][5] Financial Performance - Operating profit fell by 48% to JPY 591.5 billion (US$3.9 billion) and net profit decreased by 42% to JPY 465.4 billion (US$304.2 billion) [1] - Global vehicle sales decreased by 9.1% to 2.561 million units, with North America sales down 4.7% to 1.211 million units, Asia (excluding Japan) down 18.2% to 739,000 units, and Japan down 6.3% to 439,000 units [2] - Revenues from vehicle sales dropped by 4.3% to JPY 10,435 billion, and the automotive division reported an operating loss of JPY 166.4 billion compared to an operating profit of JPY 402.6 billion previously [2] Other Business Segments - Global motorcycle sales increased by 6% to 16.44 million units, while power products sales slightly declined to 2.5 million units [3] - The combined operating profit from motorcycles and financial services was JPY 758 billion, which offset the losses from the automotive division [3] Future Outlook - Honda maintained its global revenue forecast for the full fiscal year at JPY 21.1 trillion, a 2.7% decline from the previous year, but reduced its operating profit forecast to JPY 550 billion from JPY 700 billion [4] - The company kept its global vehicle sales forecast unchanged at 3.34 million units [4] - Honda plans to focus on enhancing the profitability of its internal combustion engine (ICE) and hybrid vehicle operations while reducing losses from its US battery BEV operations [5]

Core Viewpoint - Toyota Motor plans to significantly increase global hybrid vehicle production by 2028, anticipating a rise to 6.7 million hybrids, reflecting a shift in strategy as government support for fully electric vehicles diminishes [1][2]. Group 1: Production Plans - Toyota's total vehicle output is projected to increase by approximately 10%, with hybrids expected to constitute about 60% of the 11.3 million vehicles planned for 2028, up from roughly half [2]. - The company aims to enhance hybrid production in the US, where established models like the Camry and Tacoma have shown strong sales performance [3][4]. Group 2: Market Context - The US government has begun to dismantle electric vehicle incentives, impacting the market landscape for fully electric cars [3]. - In Europe, the EU has reversed its planned ban on new internal-combustion-engine vehicles, further influencing Toyota's hybrid strategy [3]. Group 3: Financial Commitments - Toyota announced a commitment of Y1.5 trillion ($10 billion) in the US over five years, starting with Y140 billion for hybrid engine and component production at five plants [4]. - The company held a 58% share of the global hybrid market at the end of 2025, according to its own figures and data from GlobalData [4]. Group 4: Industry Trends - The UK-based research group has raised its forecast for worldwide hybrid and plug-in hybrid sales to 29 million vehicles by 2030, indicating a growing market for hybrids [5]. - Competitors like Ford and General Motors are adjusting their strategies, with Ford scaling back EV programs and GM reorganizing its EV output [5].

Industry Overview - The electric vehicle (EV) market is expanding globally, indicating a significant transition from internal combustion engines to EVs, which presents investment opportunities across various sectors including traditional automakers, charging infrastructure, battery companies, and suppliers [1] Company Analysis: QuantumScape - QuantumScape is a leader in solid-state lithium-metal battery technology, which promises faster recharging, longer range, enhanced safety, and lower costs, potentially revolutionizing EV batteries [2] - The company is transitioning from a research-focused entity to generating initial revenue by early 2026, which could attract more institutional investment and reduce risk [3] - QuantumScape has begun shipping B1 samples of its QSE-5 cell, marking a key milestone towards commercial volume production through its new Cobra production process [4] - A joint venture with PowerCo, Volkswagen Group's battery entity, allows for the mass production of QuantumScape's battery technology for approximately 1 million vehicles annually, generating royalty payments for QuantumScape [5] Company Analysis: Ferrari - Ferrari is recognized for its high-performance supercars but is also positioning itself as a significant player in the electric vehicle market through a different strategy [6] - Instead of fully committing to electric vehicles, Ferrari has opted to invest in hybrid technology, which has proven successful, with hybrids accounting for 43% of the company's shipments in the third quarter of 2025 [7]

Group 1 - BYD is reassessing its strategy in India due to surging demand and import limits affecting growth, considering local assembly options like semi-knocked-down (SKD) assembly [1][2] - The company aims to pursue safety and regulatory approvals for more models as current quotas are constraining growth, with strong sales momentum prompting this review [1][2] - Sales in India increased by approximately 88% last year, reaching around 5,500 vehicles, while import limits cap fully built models at 2,500 units [3] Group 2 - Fully built cars face tariffs of up to 110%, whereas SKD assembly could reduce tariffs from 70% to 30%, making it a more viable option for BYD [3] - BYD has approached Indian regulators to highlight that import ceilings could hinder further growth, noting that inventory sold out in the December quarter [4] - Recent discussions between Ford and BYD regarding a potential battery supply arrangement for Ford's hybrid vehicles indicate a strategic collaboration as Ford shifts focus from electric vehicles to hybrids [4]

Vehicle Sales Overview - New vehicle sales in the Philippines increased by 2% to 42,870 units in December 2025 from 42,044 units in December 2024, indicating a slight market growth despite recent slowdowns [1] - The total vehicle market for 2025 saw a minor decline to 463,646 units from 467,252 units in 2024, with commercial vehicle sales rising by 7% to 370,722 units, while passenger car sales dropped by 23% to 92,924 units [3] Market Dynamics - The Philippine vehicle market, including non-CAMPI/TMA members, grew by 3.7% to 491,395 units in 2025 from 473,842 units in 2024, showcasing resilience in the overall market despite challenges [3] - Toyota led the market with a 5% increase in sales to 229,447 units, driven by strong demand for its Hilux and Avanza/Veloz models, while other brands like Mitsubishi, Suzuki, Ford, and Nissan experienced varying sales changes [4] Electrified Vehicle Segment - Sales of electrified vehicles surged by 142% to 58,903 units in 2025, with hybrid vehicles making up approximately 90% of this total, reflecting a growing consumer interest in sustainable options [5] - The government's expansion of the EO12 zero-tariff incentive program to include hybrid vehicles has likely contributed to this significant growth in electrified vehicle sales [5] Economic Context - Economic growth in the Philippines is projected to have stabilized in Q4 2025, following a slowdown to 4.4% year-on-year in Q3, influenced by increased government spending due to severe weather-related flooding [2] - For the full year, GDP growth is estimated at 4.7%, down from 5.7% in 2024, indicating a challenging economic environment despite a reduction in the central bank's benchmark interest rate by 200 basis points to 4.50% [2] Future Projections - GlobalData forecasts a continued growth in the light vehicle market, expecting a 4% increase to 493,000 units in 2026 and a further 5% growth to 517,000 units in 2027, driven by consumer response to lower interest rates [6]

Core Insights - The automotive industry is undergoing significant transformation, with a shift from internal combustion engines to hybrids and electric vehicles, alongside the integration of AI in production and autonomous vehicle software [2] - Ford Motor Company ended 2025 positively, achieving strong sales performance and market share growth [3][5] Group 1: Sales Performance - Ford's total sales increased by 6% in 2025, surpassing 2.2 million vehicles in the U.S., with a market share of 13.2% [5] - In December, Ford outperformed the industry for the 10th consecutive month, gaining 0.6 percentage points in market share [4] - The fourth-quarter sales rose by 2.7%, contributing to Ford's best annual and quarterly sales performance since 2019 [5] Group 2: Product Strategy - Ford's F-Series trucks sold over 820,000 units in 2025, marking an 8.3% increase and outselling its nearest competitor by approximately 250,000 trucks [8] - The company is shifting its focus from full-electric vehicles to hybrids and extended-range vehicles until the new Universal EV Platform is operational [9][10] - Ford achieved record hybrid sales in 2025, with over 228,000 units sold, indicating profitability in hybrids compared to electric vehicles [10] Group 3: Market Context - Despite strong sales, Ford faces challenges such as changing trade policies, tariffs, and increasing competition from Chinese automakers [11]

Group 1: Export Performance - The value of vehicles exported from South Korea increased by 2% to US$72.0 billion in 2025, up from US$70.8 billion in 2024, driven by strong overseas demand for hybrid vehicles [1] - Exports of eco-friendly vehicles, including hybrid and electric vehicles, rose by 11% to US$25.8 billion, with hybrid vehicle shipments increasing by 30% to US$14.8 billion [2] - Exports of used cars surged by 75% to a record high of US$8.9 billion, reflecting the improved reputation of South Korean vehicles in overseas markets and favorable exchange rates [2] Group 2: Production and Market Trends - New vehicle exports fell by 1.7% to 2.7 million units, accounting for 67% of vehicle production in the country, while domestic vehicle production decreased by 0.6% to 4.1 million units [3] - The GM Trax was the highest-volume model with an output of 308,000 units, followed by the Hyundai Kona with 270,000 units and other models [3] Group 3: Industry Challenges and Future Outlook - The Ministry of Trade, Industry and Energy noted that US tariff measures posed challenges for the automobile industry in 2025, but uncertainty was eased through policy measures aimed at strengthening competitiveness in eco-friendly vehicles [4] - In 2026, the automobile industry is expected to face challenges such as increased localization of production overseas and intensifying competition, with a projected 6% decline in light vehicle production to 3.809 million units [4]

Core Viewpoint - The company emphasizes a multi-technology approach to achieve energy security and reduce fossil fuel dependence in India, highlighting the importance of various technologies including battery electric vehicles, hybrids, and alternative fuels like ethanol and hydrogen [1][10]. Group 1: Multi-Technology Approach - The automaker believes that a combination of technologies is essential due to India's geographical diversity and consumer acceptance challenges [1][10]. - Key initiatives from the government, such as the ethanol program and hydrogen mission, are aimed at increasing fossil fuel substitution and enhancing energy security [10]. - Multiple technologies, including compressed biogas (CBG) and hydrogen, are critical for addressing localized pollution issues [4][10]. Group 2: Hybrid Vehicles and Local Conditions - Hybrid vehicles are particularly suited for congested areas like Delhi, where their electric motors can effectively operate in slow-moving traffic [5][10]. - The company asserts that hybrids, alongside EVs, play a significant role in combating air pollution [6][10]. Group 3: Roadmap for Sustainable Mobility - The company is committed to developing a strong portfolio of green technologies, including a full range of EVs, strong hybrids, plug-in hybrids, and fuel cell vehicles [6][10]. - Expansion of charging infrastructure is identified as a key factor for enhancing EV adoption across the country [7][10]. - The goal is to transition away from petrol and diesel rapidly, aligning with global environmental challenges focused on carbon neutrality [7][10]. Group 4: Economic Viability and Manufacturing - The company emphasizes the need for a reduction in manufacturing costs to ensure the viability of the EV segment, moving away from reliance on subsidies [9][10]. - Viability is expected to be achieved through scale, which will be facilitated by introducing more electrified technology products [9][10].