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"Anticipation Builds as Ford Motor Prepares to Release Earnings After Market Close: Insights into Wall Street Expectations"

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Ford and GM to Discuss EV Strategies and Contract Negotiations at Upcoming Earnings Calls

Ford's Model e Electric Vehicle Business

Ford's "Model e" electric vehicle business has been a topic of concern for investors as it reported significant losses in the past year. The company lost $2.1 billion on an operating basis and $722 million in the first quarter of this year. These losses have widened compared to the previous year due to increased production of electric vehicles. Ford recently announced price cuts of up to $10,000 on the F-150 Lightning pickup truck as production and inventory levels increase.

GM's Slow Rollout of Electric Vehicles

General Motors (GM) has also faced criticism from Wall Street analysts for its slow rollout of electric vehicles. Questions have been raised about GM's EV strategy, including pricing, sales targets, and the decision to revive the Chevy Bolt months after announcing its discontinuation. The slow production of electric vehicles has been attributed to supply chain challenges faced by the company.

Challenges in On-Shoring Advanced EV Battery Technology

Both GM and Ford are facing challenges in on-shoring advanced EV battery technology in a profitable way at scale. Analysts have highlighted these challenges and investors are eager to hear more about the companies' EV investment strategies. Ford is expected to face similar scrutiny to GM in terms of its EV investments.

Contract Negotiations with the UAW Union

Investors are also interested in hearing about any insights regarding contract negotiations with the United Auto Workers (UAW) union. The negotiations are expected to be contentious and challenging as the UAW demands better working conditions and benefits for its members. The current contracts are set to expire in September and cover approximately 150,000 UAW members working for the automakers.

Overall, the upcoming earnings calls from Ford and GM will provide insights into their EV strategies, the progress of their electric vehicle businesses, and updates on contract negotiations with the UAW union. Investors will be closely monitoring these updates as they assess the future prospects of these automakers.

Conclusion: How the Ford and GM Earnings Calls Could Impact a New Business

The upcoming earnings calls from Ford and GM, where they will discuss their EV strategies and contract negotiations, are not only significant for these automakers but could also have implications for new businesses entering the electric vehicle market.

One key takeaway is the challenging nature of the EV business. Ford's significant losses in its "Model e" electric vehicle business highlight the financial risks associated with transitioning to electric vehicles. This serves as a cautionary tale for new businesses, emphasizing the need for careful planning, cost analysis, and realistic sales projections. It is crucial for new ventures to consider the potential impact of scaling up production and the associated costs, which can account for widening losses if not managed effectively.

GM's slow rollout of electric vehicles and the supply chain challenges it has faced underscore the importance of a robust and efficient supply chain. For new businesses, this highlights the need for thorough supplier evaluations and proactive strategies to mitigate potential disruptions. A well-thought-out supply chain plan is crucial for maintaining consistent production and meeting market demand.

Another key consideration is the contract negotiations with the UAW union. The demands for better working conditions and benefits highlight the importance of building strong relationships with labor unions, as employee satisfaction and fair compensation are crucial for productivity and business stability. New businesses entering the electric vehicle market should pay attention to labor dynamics and strive to establish positive relationships with unions to avoid potential disruptions.

Overall, the outcomes of Ford and GM's earnings calls could serve as valuable lessons for new businesses entering the electric vehicle market. They highlight the challenges of transitioning to EVs, the significance of a robust supply chain, and the importance of labor relations. By learning from the experiences and strategies of established automakers, new businesses can better navigate the evolving landscape of the electric vehicle industry and position themselves for success.

Article First Published at: https://www.cnbc.com/2023/07/27/ford-motor-f-earnings-q2-2023.html

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