General Motors (GM) reported higher profits in the second quarter of 2024, driven by strong auto sales in North America, particularly in trucks. The company's focus on gas-powered vehicles comes as it slows down its electric vehicle (EV) build-out, citing slower EV growth in the near future. GM's Cruise autonomous vehicles service has resumed in three cities after a temporary pause due to safety concerns. Additionally, the company is delaying the revamp of a plant in Michigan to produce EVs. Despite the positive financial results, GM shares were down 6.2 percent in morning trading. [04fbbf2b]
Ford has announced scaled-back production and delayed deployment of Electric Vehicles (EV) due to lower-than-expected demand. The company's Ford+ strategy aims to provide vehicles for consumers on their terms, including electric, internal combustion, or hybrid options. Ford's embrace of the current market environment may lead to better financial results and stock returns. Compared to General Motors, Ford offers better value in terms of price-to-free cash flow per share and dividend strength. Ford plans to return 40-50% of adjusted free cash flow to shareholders. The company's fundamental value and adjusted EV plans make it an attractive investment option. [ab8b3f64]
Ford is adjusting production and prices of EVs in response to market demand. Tesla deliveries slumped in Q1 2024. Ford plans to release a couple of three-row SUVs and another pickup truck. CEO Jim Farley emphasized the importance of affordability in the EV market. Virtual artist Vince Burlapp created CGI illustrations of a new family of compact EVs for Ford. Ford is joining the cheap EV game alongside brands like Volkswagen, Hyundai, Kia, Chinese automakers, and Tesla. [2d4f9819]
Ford is using artificial intelligence (AI) to train its dealership staff on electric vehicles. The company has launched Ford University, an online training platform designed to help Ford dealers learn about new in-vehicle technology, understand electric vehicles and charging, and improve communication skills. Ford University uses AI to provide personalized recommendations and feedback to dealership employees. The platform includes gamification elements to encourage engagement and offers 24/7 access through a mobile app. It also focuses on electric vehicle training, with 25 EV-focused modules covering topics such as EV fundamentals, charging, test drives, and service. Ford University aims to improve EV education at Ford dealerships and enhance the knowledge and expertise of dealership staff. However, the success of the program will depend on dealership management and their implementation of training requirements. Some questions have been raised about whether Ford University is enough to improve EV education at Ford dealerships and whether dealership staff will have the time and motivation to engage with the platform. Another online EV education site called EV Live is also mentioned in the article, which allows dealership employees and the public to interact with an electric vehicle specialist. [f810a6b9]
General Motors (GM) reported better-than-expected earnings, focusing on North American trucks. GM is reducing inventories in China and pausing production of its self-driving car due to a drop in demand. GM is refocusing on its core vehicles, particularly its truck-and-SUV business. The shift back to North America is gaining momentum as more companies find it difficult to do business in China. U.S. businesses could learn from GM's strategy of refocusing on its core market. [824133b3]