Ford and General Motors enter a new phase of uncertainty on prices and demand – By Michael Wayland (CNBC) / Jan 30 2023
- Ford and General Motors are set to report earnings this week.
- Automakers have reported record results amid a tight supply of new vehicles and strong demand.
- Ford cut prices on its electric Mustang Mach-E, weeks after EV leader Tesla slashed its own prices.
DETROIT – Let’s talk about pricing power.
At least, General Motors and Ford Motor likely will be doing that this week as they report fourth-quarter results and 2023 guidance, with Wall Street watching for signs of weakening consumer demand and a tougher pricing landscape.
Either issue would mean lower profits this year for the automakers, which are expected to report relatively solid fourth-quarter results over subdued year-ago earnings. GM is expected to report fourth-quarter earnings per share of $1.69, a 25% increase over the year-ago period, while Ford is expected to report EPS of 62 cents, more than doubling the 26 cents it posted a year earlier, according to Refinitiv consensus estimates.
Automakers have reported record results in recent years amid the tight supply of new vehicles and resilient consumer demand. They have banked on sustained pent-up demand as inventory levels normalize, hoping to avoid heavy discounts or incentives to move vehicles.
CONTINUE > https://www.cnbc.com/2023/01/30/ford-general-motors-earnings-prices.html
