General Motors Tops Toyota But GM Warns On Earnings

U.S. auto sales plunged in the second quarter, after General Motors (GM) and other auto giants idled factories again due to supply challenges.


GM’s Q2 sales tanked 15% but it outsold Toyota Motor (TM). General Motors guided Q2 earnings lower while backing full-year guidance. GM stock rose Friday, near 52-week lows.

Stellantis (STLA) and Honda Motor (HMC) also posted double-digit declines in Q2 sales, with Ford (F) on deck.

Sometime in the week ahead, Tesla (TSLA) should report global Q2 production and deliveries as well.

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Here is how automakers performed in Q2 vs. Cox Automotive expectations. The results show sales volume, as well as sales growth or decline vs. a year ago.

General Motors

Q2 auto sales estimate: 575,911, down 15.8%.

Results: GM sold 582,401 vehicles, down 15%. That included 7,300 electric vehicles. The company said it continues to ramp up on new EVs, including the Cadillac Lyriq SUV and Hummer truck.

In a news release Friday, General Motors said that Q2 wholesale volumes were impacted by the ongoing semiconductor supply shortage and other supply-chain disruptions, mostly in June. As a result, GM will delay delivery of about 95,000 units to dealers into the second half of 2022.

In a separate 8-K filing, the auto giant guided Q2 EBIT-adjusted of $2.3 billion-$2.6 billion, lower at the midpoint than consensus. It maintained full-year EPS guidance of $6.50-$7.50, on expectations for a second-half recovery. It continues to see full-year wholesale volumes rising 25%-30%.

Shares rose 1.4% to 32.19 Friday. GM stock snapped a four-session losing streak. Shares remain below a falling 50-day line and well below the 200-day average.

Toyota Motor

Q2 auto sales estimate: 543,819, down 21%.

Results: Toyota sold 531,105 vehicles in Q2. The automaker’s June sales fell 18%, year over year. Sales in the first half of 2022 fell 19%. Its sales of electric and hybrid vehicles were down 13% in June and are down 11% year to date.

Toyota Motor stock gained 0.8% to 155.38 on the stock market today.

Ford Motor

Q2 auto sales estimate: 496,248, up 5.1%.

Results: Check back later.

Ford stock advanced 1.7% to 11.21 Friday. Shares snapped a three-day slide. They are below their 50- and 200-day lines.


Q2 auto sales estimate: 412,005, down 15.1%.

Results: Stellantis sold 408,521 vehicles, down 16%. Year to date, sales are down 15%.

Stellantis stock edged up 0.3% to 12.40 Friday. Stellantis is the parent for Chrysler, Fiat and Peugeot brands.

Honda Motor

Q2 auto sales estimate: 254,230, down 47.7%.

Results: Honda sold 239,789 vehicles, down 51%. The automaker said Q2 sales were severely challenged by supply issues while customer demand remains strong.

Honda stock eked out a 0.3% to 24.21on Friday.

U.S. Auto Sales Slow, Outlook Cut For 2022

The annualized pace of U.S. light vehicle sales reached 13.4 million units in Q2, down from 17 million a year ago, according to GM’s estimate.

On Tuesday, Cox Automotive cut its full-year forecast to 14.4 million units, below the 2020 level.

Inventory shortages continue to weigh on U.S. auto sales, analysts say.

The pandemic fueled shortages of microchips and other components that automakers need to build cars. The Russia-Ukraine war and China’s Covid battle have aggravated supply pressures.

In Q2, General Motors, Ford and Stellantis again suspended factories after their U.S. sales tanked double digits in the first quarter.

This summer, Ford will reportedly scale back vehicle production at four plants. But on Tuesday, Volkswagen (VWAGY) CEO Herbert Diess said that chip shortages are easing.

Find Aparna Narayanan on Twitter at @IBD_Aparna.


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