General Motors And Ford Are Facing That Challenge As They Rush Back To Gas Powered Trucks

General Motors (NYSE: GM ) and Ford Motor (NYSE: F ) will report their first quarter results next week. Both need to answer how they intend to grow their profits amid the EV downturn that even the king of EVs, Tesla Inc (NASDAQ: TSLA ), is not immune to. Tesla warned of slower growth this year. Along with the drop in EV sales, Tesla’s stock is down 39% year to date. With increasing competition in China, Tesla has also found itself in the mud, let alone legacy manufacturers struggling to make their biggest changes to the electric age yet to come, not so fast.

GM

GM has yet to outline its strategy for restructuring its business in China. Last year, GM delivered 2.1 million vehicles in the world’s largest EV market. In addition to restructuring, GM also needs to address its struggling Cruise Robotaxi division. But when it comes to seeing solid profits, GM is expected to report strong sales of its Chevrolet and GMC trucks, as well as SUVs.

Ford

Ford, derives its power from burning trucks, including its Ford Pro commercial vehicles. Ford confirmed its underlying profit guidance for the year to be between $10 billion and $12 billion.

Last year, Ford lost nearly $4.7 billion on EVs. This year, it predicted a loss of 5 billion dollars. In February, it made it clear that it will launch the next generation of EVs only when they can be profitable. Earlier in April, Ford announced that it intends to slow down its flagship EV programs. Ford has had to rethink the launch of three-row EVs in Canada and its next-generation electric pickup truck built in Tennessee. In a separate announcement, Ford announced it will delay the delivery of its new EV truck it will build at a new plant in west Tennessee until 2026. Last year, it planned to start production in late 2025, targeting annual output. of 500,000 electric trucks. But after reconsidering, it was decided to build output gradually. Meanwhile, Ford continues to increase its hybrid offerings.

Ford and GM are racing behind gas-guzzling trucks.

One thing that is clear is that both Ford and GM are getting power from their combustion trucks at the moment, but the EV era is yet to come. GM and Ford are expected to provide more details on their strategic adjustments when they report results on Tuesday and Wednesday, respectively.

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