Core Viewpoint - General Motors (GM) has indicated that its electric vehicle (EV) strategy is incurring significant costs, with substantial charges expected in the fourth quarter and ongoing financial impacts anticipated in the future [1][2]. Financial Impact - GM will record approximately $6 billion in fourth-quarter charges related to its EV plans in the US, along with an additional $1.1 billion for restructuring in China [1]. - The charges are primarily due to contract cancellations, supplier settlements, and asset writedowns, reflecting a decline in demand for battery-powered vehicles [1]. - A $1.6 billion writedown was recorded in the third quarter as GM began to shift its strategy following regulatory changes [3]. Sales Performance - EV sales for GM fell by 43% in the fourth quarter after the expiration of the consumer tax credit, prompting a rollback of its EV plans in favor of hybrids and gas-powered vehicles [4]. - Despite the financial setbacks, GM plans to continue offering its existing electric models to consumers [2]. Industry Context - GM's profit warning follows Ford's announcement of a $20 billion reduction in EV production due to similar challenges, including lower-than-expected demand and regulatory changes [5]. - Other automakers, such as Honda, Jeep, and Ram, have also adjusted their EV strategies, with Porsche announcing a $2.2 billion hit as it shifts focus back to hybrids and gas vehicles [6].

Key Takeaways As we start out 2026, used car pricing is showing anticipated seasonal movement, with one important twist. According to the December 2025 release of the Used Car Price Trends report from Carfax, year-end shifts are once again giving buyers more negotiating leverage. This time, however, the most meaningful changes are happening in hybrids and electric vehicles (EVs). Late-year moves from 2025 are offering early signals about where prices may go next. While some vehicle categories are holding re ...

Ford's hybrids are more popular than ever, but the company has struggled to find momentum in EVs. ...

DEARBORN, Mich.--(BUSINESS WIRE)--Ford Motor Company outperformed the industry for its 10th consecutive month in December, pushing market share higher for the year by 0.6 percentage points. For the year and Q4, Ford registered both sales and share gains, beating the industry on both fronts. This demonstrates the success of Ford's strategy to appeal to a broad customer base through a diverse range of trim series and powertrain offerings. Ford's total sales for the year climbed 6.0% to 2,204,124. ...

Core Insights - The used car market experiences significant volatility at year-end, with dealerships eager to clear inventory and meet sales targets while buyers tend to reduce spending during the holiday season [2][4] Group 1: Price Trends - Used car prices are generally declining in several mainstream categories, including sedans, smaller SUVs, and some midsize crossovers, as inventory builds up and demand cools [5] - Hybrids and electric vehicles (EVs) saw a notable price drop of 1.8% from October to November, influenced by the removal of the $4,000 federal tax credit for purchases made after September 30, 2025 [6] - Trucks and larger SUVs have shown resilience in pricing, remaining relatively stable compared to other categories, particularly in regions where utility and towing capacity are valued [7] Group 2: Year-over-Year Context - Used car prices reached an all-time high in 2022 due to pandemic-related supply chain disruptions, leading to a shortage of new cars and parts, followed by a rapid rebound in demand [8][10] - Although prices have decreased from their peak, they have not returned to pre-pandemic levels, which may contribute to perceptions of high costs among buyers [10] Group 3: Strategic Insights for Buyers - December is characterized by increased negotiating power for buyers, as market conditions are calmer and sellers are more motivated compared to January [9][11] - The focus for buyers should be on leveraging timing and category knowledge rather than expecting dramatic price drops, as informed buyers can still negotiate meaningful savings [11]

Ford made a decision to pivot away from full electric vehicles, and it comes at a hefty cost -- but does it make Ford stock a sell?The automotive industry has been adapting to the shifting landscape as the Trump administration continues to remove support for electric vehicles (EVs), helping fuel a slowdown in EV demand during the fourth quarter and likely beyond. Investors have been watching these changes and massive strategic decisions, and billions of investment dollars hang in the balance. This week, For ...

Core Viewpoint - Ford Motor Co is shifting its strategy from aggressive all-electric vehicle (EV) investments to a focus on hybrids, extended-range EVs, and gas-powered trucks, indicating a strategic reset that prioritizes profitability over competing directly with Tesla [1][2][8] Group 1: Strategic Shift - Ford is stepping back from large, capital-intensive EV projects and narrowing its focus to areas where it believes it can execute profitably [2] - The decision to cancel a large all-electric pickup and transition the F-150 Lightning to an extended-range platform reflects a strategic choice to reshape its portfolio [4] - By leaning into hybrids and extended-range EVs, Ford is prioritizing flexibility and appealing to buyers who want electrification without fully committing to charging infrastructure [5] Group 2: Competitive Landscape - Tesla's model is built around pure EV scale, requiring substantial capital and the ability to withstand margin pressure, which Ford is choosing to avoid [3] - Ford is not trying to compete with Tesla on its terms, instead opting for a different approach that allows it to monetize its strongest franchises like trucks and SUVs [6][8] Group 3: Capital Allocation - The strategic reset is fundamentally about capital allocation, as large EV programs require patience and absorb cash, while hybrids and gas-powered trucks generate it [7] - By walking away from the most capital-intensive EV projects, Ford lowers execution risk, improves earnings visibility, and reduces exposure to regulatory changes [7] Group 4: Market Positioning - The market has not punished Ford for its decision to rewrite its playbook around profitability and execution, positioning itself for a market cycle that rewards cash flow over ambition [8] - Ford's approach suggests that not every automaker needs to win the EV race; some can succeed with a playbook that fits their actual market strategy [8]

EVs aren't really working out for Ford, so now it's chasing the AI boom instead. The Detroit auto giant said on Monday it would pull back from electric vehicles in a move that would cost the company $19.5 billion.In addition to scrapping planned electric models and building more hybrids, Ford said it would repurpose its EV battery factory in Kentucky to build batteries to power data centers and energy infrastructure. The Mustang maker added that it would invest $2 billion to scale the new energy storage b ...

Core Viewpoint - Ford plans to book approximately $19.5 billion in special items as it reshapes its electric vehicle (EV) strategy, focusing on hybrids and extended-range vehicles while pulling back from larger battery models [1] Group 1: Financial Implications - The charges related to the changes under the Ford+ plan will primarily occur in the fourth quarter of 2025, with some recognized in 2026 and 2027 [2] - The company anticipates around $5.5 billion of the total to be cash outflows, mainly in 2026, with the remainder in 2027 [2] Group 2: Strategic Shift - The moves aim to align capital spending with customer demand and higher-return opportunities, targeting profitability for the Model e EV unit by 2029, with expected yearly improvements starting in 2026 [3] - Ford's president and CEO emphasized that this is a customer-driven shift to create a stronger and more profitable company [3] Group 3: Operational Changes - Ford will abandon plans for certain larger fully electric vehicles due to weaker-than-expected demand, high costs, and regulatory changes, prioritizing affordability, choice, and profits [5] - The company intends to broaden powertrain options, focusing on hybrids and extended-range electric propulsion, while future pure EV development will concentrate on a new Universal EV Platform for smaller, more affordable models [6] Group 4: Market Projections - By 2030, Ford expects about half of its global sales volume to consist of hybrids, extended-range EVs, and fully electric vehicles, an increase from an estimated 17% in 2025 [7] - In North America, Ford will focus its EV efforts on the Universal EV Platform, described as low-cost and flexible, with the first vehicle based on this architecture being a fully connected midsize pickup truck scheduled for production in 2027 [7] Group 5: Product Development - The company is revising its strategy for larger trucks and SUVs to meet demand for capability, towing, and range, including the addition of extended-range electric variants [8]

This is a major pivot to say the least, but I think we could all see it coming uh because the consumer basically helped make this decision for you. Tell us what what what's driven uh these plans. >> Well, as you said, it was really the customer changing their decision.You know, we saw hybrids really take off last couple years like, you know, last month uh about well, we had 30% increase in our hybrid sales. We're now number three in our I think we're 80% uh hybrid uh market share in trucks. So we saw this h ...