General Motors

It's interesting that GM is pushing hard into commercial EV vans with the BrightDrop-derived Chevy Express EV and targeting fleet operators, because that's actually a segment where total cost of ownership math works in EVs' favor right now. Fleet buyers care about fuel and maintenance savings in a way individual consumers don't.

GM's EBIT guidance keeps getting revised and the EV losses per unit are still massive even by their own admission. They've now pushed out the target for EV profitability multiple times and I don't think the market is fully pricing in the possibility they never actually get there before the capital runs out on that bet.

GM announced it is discontinuing the Chevy Blazer EV's base rear-wheel-drive trim and focusing production on higher-margin AWD variants following software and quality issues that led to a sales halt earlier this year. The company also confirmed it is pulling back capital from Cruise and restructuring the robotaxi unit significantly.

GM's North America truck margins are the only thing holding this company together and Ford is coming hard with the F-150 and Super Duty refresh cycles while Ram is undercutting on fleet pricing. The moment Silverado and Sierra pricing power cracks, there's nothing else in the portfolio generating real profit.

GM's Ultium platform is finally hitting its stride and the Chevy Equinox EV at $35k is genuinely the first mass-market EV that can compete with Tesla on price without needing a federal subsidy to make it palatable. If they can get production volumes up without the battery cell bottlenecks they had last year, this thing could be a real volume driver by late 2025.

People are sleeping on GM Financial. It's a massively profitable captive finance arm that benefits from high used vehicle prices and strong new vehicle attach rates. At this valuation you're basically getting the finance business and the truck franchise together for less than 5x earnings.

With the UAW contract now locked in and adding something like $575 per vehicle in labor costs, how is GM planning to offset that without either raising prices into a softening demand environment or squeezing margins further on a segment that already isn't making money?

Does anyone have a good read on what GM's China JV profitability looks like now? I know SAIC-GM has been getting crushed by BYD and local brands but I can't find clean numbers on how much that segment is actually dragging on equity income.