Companies

Carmakers Draw on Pickups, Tariff Refunds, and Service Revenue Amid EV Losses

GM and Ford included expected tariff refunds in their first-quarter earnings results.
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Carmakers Draw on Pickups, Tariff Refunds, and Service Revenue Amid EV Losses
Eight versions of GM’s new generation Chevrolet Silverado pickups are lined up at an event near Alpine, Idaho, on Aug. 7, 2018. Joseph White/Reuters
Panos Mourdoukoutas
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General Motors’ and Ford’s recent earnings reports portray a challenging time for Detroit. Both companies are relying more on potential tariff refunds, and service-based revenue—not sales—to support profitability, while electric vehicle (EV) losses continue to deplete cash flow.

Management commentary from both firms highlights the pressures facing the sector.

Sales Volume Decline

General Motors held its April 28 conference call after it released its first-quarter results.
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Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”