(WWJ) The three Detroit carmakers are in slightly different positions as they prepare to announce their first quarter earnings this week.
Often sales numbers can be a guide to a carmaker's profitability potentials, but the first quarter was somewhat of an outlier when it comes to vehicle sales.
“Y’know, I think coming off of, arguably, a stronger than expected 2025, the first quarter started off a little soft,” said Jeff Schuster, director of auto insights with S and P Global Mobility.
Soft, because of the comparison with the first quarter last year, which was inflated by car buyers who were trying to beat tariffs.
Analysts expect GM to top the Detroit Three, when they release their profits tomorrow. They had the strongest sales, and were helped by good availability of pickup trucks.
Pickups were a problem for Ford, which couldn’t make as many as it needed because of a fire at an aluminum supplier. That will eat into their profits. Ford earnings come out Wednesday afternoon.
After a terrible year in 2025, Stellantis is looking for a bounce-back performance. Their sales were up in the quarter, particularly with profitable Jeeps and Rams. Stellantis, which had only been releasing their results twice a year, has just switched to quarterly reporting. So, Thursday’s report will be a first for them.
All three companies are struggling when it comes to finding ways to make money with electric vehicles. The cost of shifting away from big EV plans to a world that continues to be dominated by gasoline powered vehicles were, for the most part, put into 2025. That will allow this quarter to be a clean start.
“That was the goal, to take the bulk of the hit, reset the monitor and the strategy, at least in the near term, and manage the operation that way,” says Schuster.
Carmakers, particularly GM, could also be helped by tariff related refunds, in the wake of the US Supreme Court decision striking down some–but not all–of the tariffs.
Earlier in the quarter, GM had described this as the “most stable” start to a year in the post-covid period. But Shuster says there remain a lot of variables, including tariffs, affordability, high gas prices and another possible shortage of computer chps.
“I think if I characterize the auto industry, today, yesterday, tomorrow, it’s going to be increased levels of that volatility, of uncertainty.”
