Can Ford Be More Like GM?

General Motors Co. (NYSE: GM | GM Price Prediction) releases quarterly earnings before Ford Motor Co. (NYSE: F). This year, GM’s results were spectacular and much better than expected. It increased its full-year guidance and said the effects of tariffs on sales had been only modest. Instead of a full year’s tariff earnings hit of about $5 billion, management said it would be closer to $3.5 billion. GM says its full-year EBIT will be between $12 billion and $13 billion. Earlier in the year, it had put that at  $10.0 billion to $12.5 billion.

GM also said it would probably take another charge for its electric vehicle (EV) business. Sales are too slow to justify earlier unit sales forecasts. The write-off was disclosed a few days before earnings and totaled $1.6 billion. CEO Mary Barra wrote in her earnings letter, “With the evolving regulatory framework and the end of federal consumer incentives, it is now clear that near-term EV adoption will be lower than planned.”

Ford’s earnings are on deck. Its stock was pulled higher by the GM news. Ford shares rose almost 5% for the day. GM’s gain was as much as 15%.

Ford has to show four things to demonstrate that it is keeping pace with GM. One is that it has flat revenue and a profit performance in line with its larger rival. Two, it must show that it is writing down the cost of what were once ambitious EV plans. The next is a forecast that is much better than the prior one it gave investors. Finally, it must report that the impact of tariffs on future earnings will be modest.

Ford also has to demonstrate, as much as anything else, that its management is competent. If there is one yardstick for this, it is Ford’s horrible quality track record that has damaged its bottom line terribly. Its warranty write-offs reveal this challenge quarter after quarter, along with management’s repeated claims that the problems will improve. By one estimate, Ford’s total recalls this year number above 150. It is almost impossible to do so poorly.

Ford’s future is an improvement in warranty write-offs, more than any other numbers it posts.

Ford Stock Price Prediction and Forecast 2025–2030