Ford, GM, Stellantis Cooling To Once-Hot EV Sector As Demand Wanes
Portfolio Pulse from Michael Juliano
Ford, GM, and Stellantis are scaling back their electric vehicle (EV) plans due to waning demand. Ford is canceling a large electric SUV and delaying an electric pickup truck, impacting suppliers like Magna International. GM is delaying a new Buick EV and an EV truck factory, while Stellantis is postponing investments in an Illinois plant, leading to potential labor disputes.
August 22, 2024 | 10:20 pm
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NEGATIVE IMPACT
Ford is canceling a large electric SUV and delaying an electric pickup truck, leading to a $1.9 billion write-down. The company is shifting focus to hybrid models and reducing EV capital expenditures.
Ford's decision to cancel a major EV project and delay another indicates a significant shift in strategy due to lower demand, likely impacting short-term stock negatively.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
General Motors is delaying a new Buick electric vehicle and an EV truck factory to avoid overshooting demand, reflecting cautious investment in the EV sector.
GM's delay in EV projects suggests a conservative approach to avoid excess production, which may lead to short-term stock pressure.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Magna International, a supplier for Ford's canceled electric SUV, is affected by Ford's shift in EV strategy, potentially impacting its revenue.
Magna's involvement in Ford's canceled EV project suggests a negative impact on its revenue, likely affecting its stock price.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Stellantis is delaying investments in an Illinois plant, causing potential labor disputes with the UAW. The company is also planning significant EV-related investments.
Stellantis's delay in plant investments and potential labor disputes could negatively impact its stock in the short term.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70