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GM President Outlines Criteria for Next-Gen Camaro

GM President Outlines Criteria for Next-Gen Camaro

Yahoo19-07-2025
⚡️ Read the full article on Motorious
Could the Camaro Return as an EV?
The Chevrolet Camaro may be gone for now, but General Motors President Mark Reuss has made it clear that the iconic pony car is not forgotten. Speaking with The Detroit News during last month's 24 Hours of Le Mans, Reuss shared insight into what would be necessary to bring the Camaro back – and hinted at the possibility of electrification playing a key role.
Reuss, who has been a longtime advocate for GM performance vehicles, reflected on his personal connection to the Camaro. His first car was a 1967 model, purchased with his father for $1,300. 'It was high school, I was 16, and it brought so much joy to me,' Reuss said. 'Not because I was racing the car, but because it was a really pretty car.'
That sense of beauty and joy, according to Reuss, would be central to a successful revival. 'I think that formula of beauty – and a little bit of functionality and fun – all of that is important,' he explained. 'If we were getting back into Camaro, that piece of it is really important.'
However, Reuss also acknowledged the shrinking pony car market, citing Ford's sales success with the electric Mustang Mach-E over its traditional V8-powered counterpart. That could mean GM is considering a similar two-pronged approach: an electrified Camaro variant to meet modern market demands, paired with the possibility of a traditional performance-focused version to keep enthusiasts engaged.
While Reuss stopped short of confirming any return, his comments suggest that GM has not closed the door on the Camaro nameplate. For fans mourning its 2024 discontinuation, this may be the clearest sign yet that a new Camaro—potentially with both EV and V8 options—could someday roar back to life.
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Pepsi: Turnaround in the Making?
Pepsi: Turnaround in the Making?

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Pepsi: Turnaround in the Making?

PepsiCo is a global snacks-and-beverages powerhouse with nearly $92 billion in FY2024 revenue. Its valuation is showing the biggest discounts in decades. Why? Management stumbled by hiking prices aggressively to offset inflation. That helped profits, but hurt volumesespecially in North America. Now they're cutting costs and trying to reignite growth. With world-class brands and a vertically integrated supply chain, can Pepsi get back on course? What does the company actually do? Warning! GuruFocus has detected 5 Warning Sign with PEP. PepsiCo isn't just soda. In fact, most of its sales come from salty snacksLay's, Doritos, Cheetos, a smaller segment of convenient foods (Quaker, Cap'n Crunch,...). Beverages like Pepsi and Gatorade make up the rest. Unlike Coca-Cola, which licenses and outsources much of its operations, Pepsi runs a vertically integrated empireowning production, logistics, and even a vast direct-store delivery (DSD) network across 200+ countries. This makes the business more asset-heavy (with $58B in PPE vs. Coca-Cola's $20B), but also gives Pepsi more control. In FY2024, 58% of revenues came from food, and 42% from beverages, with Frito-Lay as the main profit engine, generating $24.8B in sales and $6.5B in profit. You can see a detailed overview here: To be clear, Pepsi is a boring, mature business. But that's where the opportunity lies in plain sight. Why should investors care now? Pepsi is in the middle of a turnaround. Inflation jacked up production costs, which Pepsi responded to with steep price hikesdouble-digit in some quarters. That helped offset the pressure on earnings, but volumes fell: Total volume: -2% in FY2024 North America beverages: -3.5% YoY Frito-Lay: -2.5% YoY While price hikes offset some EPS impact, a consumer business has to sell, especially one with slim margins. Pepsi now faces two key challenges: Reviving growth in a tougher economic environment, with consumers opting for cheaper alternatives and input costs still rising. Adapting to shifting preferences: low-sugar, functional, and clean label brands are winning. New players like Olipop are stealing share and relevance. Pepsi must adapt to consumers who realized 40 grams of sugar in their drink is not great. All of this, plus being an asset-heavy business in an uncertain macro climate, has created the widest valuation gap between Pepsi and Coke in decades. The turnaround hinges on management executing better and sentiment improving, which could lead to margin re-rating closer to the historical average. Trump Tariffs: A New Headwind To add salt to the wound, Trump's tariffs disproportionately disadvantage Pepsi compared to Coca-Cola. Why? Pepsi produces concentrate in Ireland (to save on taxes), now subject to a 10% tariff, while Coca-Cola manufactures in the U.S., mostly avoiding this hit. Both will feel the pain of 50% aluminum tariffs, as cans make up ~25% of their packaging. Coca-Cola is already shifting to PET bottles. But Pepsi hasn't given us much direction yet. Fun Fact: Did you know that Trump installed a Diet Coke button on his desk in the Oval Office? Twice. The tariff war comes at a bad time for Pepsi, causing investor sentiment to fizzle out. But none of Trump's tariffs are final, with Pepsi already lobbying for an exemption. Latest Earnings Show Signs Of Success Despite gloomy sentiment, Pepsi surprised to the upside: Beat expectations Volume growth in PFNA and EMEA Improving trends in APAC and IB Slower deceleration in LATAM Pepsi guided for low-single-digit organic growth and flat EPS for the year. Doesn't sound excitingbut it was enough to spark a +7% rally in one day. If this momentum holds, and tariff pressure eases, there's a potential 1020% upside as valuations revert closer to their long-term average. That's assuming that Pepsi continues to trade cheaper than Coca-Cola for obvious reasons. Financial Health Check Pepsi has a strong balance sheet, though it carries more debt than some peers due to acquisitions and shareholder returns. It maintains an investment grade credit rating and has enough cash flow to easily cover its financial obligations. Nothing alarming here. Moat Analysis The moat, or competitive advantage, is the most important part of a business for value investors, and Pepsi's moat is wide and deep. Moat pillar Evidence Brand Power Pepsi, Lay's, Doritos, Gatorade, Quaker, and more enjoy strong customer loyalty and trust and rank among the world's top brands. Vertical Integration Pepsi owns a massive direct-store-delivery (DSD) system, controlling the route from production to retail shelf. This ensures prime shelf placement and rapid replenishment. Economies of Scale PepsiCo's economies of scale allow it to negotiate input pricing and give it massive marketing brands drive volume > scale lowers costs > funds marketing and innovation > further strengthens brands Even as consumer preferences shift, Pepsi's scale and shelf dominance are tough to beat. Industry & Competitive Landscape Pepsi and Coca-Cola dominate their industries. In 2024, they controlled ~18% and ~21% of the US beverage market. However, Coca-Cola has a market share advantage overseas. Comparing the leaders latest earnings, Coca-Cola guided for 3% EPS growth while Pepsi reaffirmed its target of flat EPS this year, justifying the valuation gap. The industry is now characterized by a rising share of health-oriented brands and consumer preferences for healthier snacks. Still, while Soft-drink volumes fell 3% globally in 2024, salty snacks grew 6,4%, giving Pepsi the upper hand thanks to a broader offering. All of the factors we discussed in this analysis are short-term, solvable things that management has already set its sights on. Yes, the valuation gap makes sense to a degree, but the market appears overly bearish. Capital return to shareholders Pepsi's capital return is centered around steadily growing dividends. The stock currently yields a hefty 3,95% dividend that has grown at a pace of 7,1% over the past 5 years. As you can see in the yellow box, there's no need to fear for the dividend. Pepsi is one of the famed dividend kings, or companies that have paid dividends for more than 50 years. 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The dividend yield of the two stocks also clearly shows that Pepsi is relatively undervalued. A reversal to the mean indicates a further double-digit upside from here, if the momentum from the last earnings report keeps up. You either pay for growth, or you pay for boredom. Pepsi is a boring business, and in a market that's chasing growth at all costs, it's easy to overlook. Will pepsi grow 100%? Probably not, but if management can steer the company in the right direction in the coming quarters, you're looking at easy growth potential from here. Wall Street has a diverging view of the stock, with the indicated 12-month upside at 6,65% while analysts expectations have a massive range. Again, showing the uncertainty that is being priced in. Out of 24 analysts, 17 rate the stock a hold, with 5 expecting it to outperform, and only one analyst in both the buy and "underperform" camp. 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National Grid offers in-person help with energy bills in Brockton
National Grid offers in-person help with energy bills in Brockton

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time7 minutes ago

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National Grid offers in-person help with energy bills in Brockton

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Firefly stock loses altitude after sizzling stock market debut
Firefly stock loses altitude after sizzling stock market debut

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