Latest news with #GM
CNBC
2 hours ago
- Automotive
- CNBC
As EVs stumble, automakers are bringing back a kind of hybrid that promises long range
Major automakers are set to resurrect a type of hybrid vehicle that seemed dead in the U.S. just a few years ago to meet a changing consumer demand electric vehicles (EREVs) are a form of plug-in hybrid that falls midway between traditional hybrids and full EVs. EREV cars and trucks rely on battery powered motors for propulsion (like an EV) but also have a relatively small gas engine to use as a generator to keep the batteries charged up (like a typical hybrid). A key difference between EREVs and other hybrids is the relative size of their batteries and gas engines. Mainstream hybrids and plug-in hybrids (PHEVs) like the Toyota Prius still rely on combustion engines as their main means of propulsion. Thus, they have proportionately smaller batteries, but substantial gas engines that are directly connected to their drivetrains to help move the car. EREVs are much more focused on the electric side of the equation, so they tend to have bigger batteries than other hybrids, but comparatively small gas engines that solely function as generators to top off the batteries when examples of this type of vehicle – the Chevy Volt and Fisker Karma – were introduced to the U.S market in 2011. These were followed by the BMW i3 and Cadillac ELR in 2014. But EREVs (also known as Range Extended Electric Vehicles, or REEVs), never attracted much interest from American consumers. The Volt was the most popular EREV by far, with GM selling 157,000 over nine years, until it ended production in 2019. That may seem impressive, but it's a blip in the overall U.S. new vehicle market, which saw about 16 million sales each year in that timeframe. The last EREV sold domestically was the i3, which BMW discontinued in 2022. While there are no new EREVs for sale in the U.S., several are in the pipeline. This includes an upcoming version of the Ram 1500 pickup truck, set to come to market in early 2026. A Ram spokesman noted that it will have the longest driving range the company has ever offered in a light-duty truck, up to 690 total miles between its gas engine and battery power. An EREV version of the Jeep Grand Wagoneer is also under development, according to the company. Volkswagen is planning to begin production of an EREV pickup truck and SUV under the Scout brand name starting in 2027. Hyundai Motors plans to introduce EREV versions of its mid-sized SUVs by the end of 2026, according to a spokesman. The vehicles are expected to have more than 560 miles of range, and be sold under the Hyundai and Genesis brands. In addition, a Nissan spokesman confirmed that the company is considering offering EREV options in its mid-size and larger SUVs. "They do offer advantages versus 100% EVs when it comes to hauling and towing," he said, "allowing greater driving range without the need for a large capacity battery, as well as faster refueling." James Martin, the director of consulting services at S&P Global Mobility, says one reason manufacturers are turning to EREVs is lower production costs. EREV use of smaller and less expensive batteries than full EVs allows manufacturers to keep their expenses down. EREVs are also less complex than plug-in hybrids, Martin said. PHEVs have two functioning propulsion systems and sophisticated controls to allow them to communicate with each other. Most EREVs, by contrast, are solely propelled by their electric motors. But one of the biggest advantages of EREVs is range. In China, where EREVs are gaining in popularity, the manufacturer BYD offers mid-sized sedans with more than 1,300 miles of claimed range. EREVs also alleviate range anxiety due to the ubiquity of gas stations. Consumers can just fill up with gasoline to charge the battery if a charging port is unavailable. The new EREVs can travel more than 100 miles on batteries alone, then hundreds more using gasoline. "Range anxiety is still a factor when it comes to choosing an electric vehicle over an internal combustion vehicle," said K. Venkatesh Prasad, senior vice president of research and chief innovation officer at the Center for Automotive Research. "EREVs, allay the range anxiety concern," he said. These hybrids may especially appeal to consumers who frequently travel long distances, and getting more consumers used to plugging in their vehicles might also appeal to manufacturers. "The actual charging experience of EREVs is very similar to that of BEVs," Prasad said. "So, the market adoption of EREVs is likely to be seen as a good ramp to future BEV purchase considerations," he added. Charging infrastructure is still lagging in many areas of the U.S., according to executive analyst Karl Brauer, which can make a full EV impractical for consumers. EREVs avoid that issue and may also be attractive to consumers who live in apartments or houses that lack charging stations. A recent report from McKinsey noted that EREVs could also combat cost concerns among consumers, noting that the smaller batteries can shave off as much as $6,000 in powertrain production costs, compared to BEVs. Another factor, according to McKinsey, is that both domestic and European manufacturers have seen how EREVs have gained sales momentum in China, a sign the technology may help to increase electrification adoption in their own marketplaces. "We expect all levels of hybridization to increase production in North America throughout the decade," said Eric Anderson, the associate director of Americas light vehicle powertrain forecasting for S&P Global Mobility. Hybrids, including EREVs, are a "relatively affordable way for consumers to move up the electrification ladder without a significant monthly payment increase, he said. While the EV vehicle market continued to grow last year, the pace of growth has slowed considerably. "The BEV market is in the process of shifting from early adopters to a more price-conscious buyer," Anderson said. Domestic sales of hybrids grew from 1,175,456 in 2023 to 1,609,035 in 2024, according to the U.S. Department of Transportation, a 37% increase. Plug-in hybrids grew 10% in the same period — from 293,578 to 321,774. By comparison, fully electric EVs saw 7% growth, from 1,164,638 to 1,247,656. While overall sales of traditional internal combustion engine (ICE) vehicles continues to dominate, its market share has fallen every year since 2015, according to Edmunds. Last year, ICE vehicle sales fell to 80.8% of total U.S. sales, down from 84% in 2023. Another attribute that might make EREVs popular with consumers is resale value. Hybrids - which includes EREVs and more common plug-in hybrids - depreciate less than EVs or traditional gas vehicles. Since depreciation is the most expensive part of car ownership, finding a vehicle that better retains its value can provide consumers with significant savings. By contrast, electric cars and trucks lose value faster than any other vehicle type – dropping by 58.8% after five years, compared to the overall vehicle depreciation average of 45.6% and only 40.7% for hybrids, according to research from iSeeCars. "Electric vehicle sales have been slowing on both the new and used market, with EVs sitting on dealer lots longer despite falling prices," Brauer said. "Consumers are showing increasing appreciation for hybrid vehicles, creating a friendly environment for automakers to introduce more plug-in hybrids as an intermediate step toward full electric vehicles."
Yahoo
9 hours ago
- Business
- Yahoo
Superior Industries International, Inc. (SUP): A Bull Case Theory
We came across a bullish thesis on Superior Industries International, Inc. (SUP) on Alpha Ark's Substack. In this article, we will summarize the bulls' thesis on SUP. Superior Industries International, Inc. (SUP)'s share was trading at $0.50 as of 27th May. SUP's forward P/E was 4.01 according to Yahoo Finance. Christian Lagerek/ Superior Industries, one of the world's largest aluminum wheel manufacturers, is emerging as a compelling deep-value opportunity despite ongoing industry headwinds. The company produces nearly 14 million units annually, serving major automakers like GM, Ford, VW, and Toyota, and has taken aggressive steps to counter macroeconomic challenges. After facing disruption from COVID, a post-pandemic demand peak, and now softening consumer demand, Superior has enacted cost-cutting measures and shifted operations to lower-cost regions such as Poland and Mexico. Although the company is burdened with $483 million in high-interest debt and $300 million in preferred stock, its current Net Debt/EBITDA ratio of 3.4x remains within covenant limits, supported by healthy liquidity. Notably, recent U.S. tariffs on imports have had minimal impact, as only 25% of Mexican production is exposed, and most customers assemble in Mexico, shielding the business. On the contrary, these tariffs may strengthen Superior's competitive moat by disadvantaging Chinese and Moroccan rivals. Value-added sales per wheel have grown 34% since 2019 due to a shift toward larger, premium, and EV-focused products, though total unit volumes declined from 19 million to 14 million due to lower-end volume losses. However, Superior remains the go-to supplier for most mid-to-high-end customers and is operating below capacity, with new contracts poised to lift volumes in 2025. Trading at just 5.6x 2025 EV/EBITDA and turning cash flow positive, the company offers significant upside. Valuations suggest a $27–$30/share target by 2028, reflecting 12–13x potential returns. Despite sector volatility and leverage risks, Superior's transformation positions it as a high-upside asymmetric bet. Previously, we have covered Superior Industries International, Inc. (SUP) in November 2024 wherein we summarized a bullish thesis by everyonehatespoetry on Substack. The author cited improving earnings, strong value-added margins, and potential refinancing options despite a complex capital structure. The article emphasized that EV and SUV trends were driving growth, while leverage remained the main challenge. Superior Industries International, Inc. (SUP) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held SUP at the end of the first quarter which was 8 in the previous quarter. While we acknowledge the risk and potential of SUP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SUP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10 hours ago
- Automotive
- Yahoo
Why GM is Investing Almost $1 Billion in Combustion Engines While Others Go Electric
Why GM is Investing Almost $1 Billion in Combustion Engines While Others Go Electric originally appeared on Autoblog. GM's been resolute, for the most part, on electrification. With the Silverado EV released and a mix of electric SUVs across the Chevy and Cadillac brands (Escalade iQ and Lyriq, Chevy Equinox and Blazer EV), the brand has committed harder than any other American automaker. That's not to say the automaker's commitment to internal combustion is gone, though. Tonawanda Propulsion, a GM-owned plant covering 190 acres and comprising three separate facilities, has received nearly $900 million in funding, securing over 850 jobs and production of GM's sixth-generation V8 engine. View the 2 images of this gallery on the original article The investment is important to a lot of people. 'This investment marks an exciting new chapter for our plant,' said Tara Wasik, the plant's director. "This is a testament to the hard work of the membership of Local 774,' said Raymond Jensen Jr. in an interview with local news. 'It's extremely important to the community, to the surrounding areas, and to New York State itself." The impressive sum of $888 million will go towards new machinery, equipment, tools, and renovations as part of the more than $1.5 billion GM has invested in New York State in the last 15 years. It's also hardly the first time in recent memory that GM has extended the V8's lifespan. In 2023, GM invested $579 million in its Flint, Michigan production site. There, too, V8 production will continue to chug along. View the 2 images of this gallery on the original article However, it doesn't account for the $300 million commitment made two years ago in union negotiations to produce electric vehicles, specifically at Tonawanda. And it's not the first area where GM has had to pump the brakes on EV endorsements. The company has sold off its stake in a battery production facility to its partner, LG Energy. In other areas, GM has pushed back against California's 2035 plan to eliminate sales of gas-only vehicles, which is now, by the way, completely dead. On the other hand, GM pushed into the number two spot for April EV sales, capturing nearly 15% of EV sales. Getting mixed signals? Us too, but we blame the current political and economic climate, not necessarily GM. Outfitting the plant for V8 production is important for CEO Mary Barra, too. 'Our significant investments in GM's Tonawanda Propulsion plant show our commitment to strengthening American manufacturing and supporting jobs in the U.S.,' she said in a press release. She further emphasized the plant's importance to the brand, citing its 87 years of operation. The plant will finish production of GM's fifth-gen V8 before commencing work on the sixth-gen product. This $888 million investment marks the largest single investment GM has ever made in an engine-producing facility. The fact that it happens to make V8s is almost irrelevant; it implies the combustion engine at large still has several decades of work ahead of it. GM isn't faring poorly in the EV arena, either, so unlike other automakers that have rekindled V8 production, this isn't a crutch. GM's going where the money is, and that's just good business. Why GM is Investing Almost $1 Billion in Combustion Engines While Others Go Electric first appeared on Autoblog on May 29, 2025 This story was originally reported by Autoblog on May 29, 2025, where it first appeared.
Yahoo
11 hours ago
- Automotive
- Yahoo
General Motors to Make an Investment of $888M in Tonawanda Plant
General Motors Company GM has revealed plans to invest $888 million into its Tonawanda Propulsion plant to support the production of its sixth-generation V-8 engines, which power full-size trucks and SUVs. These new engines are expected to outperform current models while enhancing fuel efficiency and lowering emissions, thanks to advancements in combustion and thermal management the past 15 years, GM has consistently invested in its manufacturing capabilities. In January 2023, it committed $500 million to its Flint Engine plant for the production of the sixth-generation V-8 project. The latest investment is now GM's largest single investment in an engine facility, making it the second plant to take on production of the new engine funding will go toward new machinery, tools, equipment and upgrades to the facility. Tonawanda Propulsion, represented by UAW Local 774, will continue producing the current fifth-generation V-8 while gearing up to begin sixth-generation production in Motors is the top-selling automaker in the United States. The company's hot-selling brands in America, namely Chevrolet, Buick, GMC and Cadillac, are boosting its top line. It is advancing well in its electrification journey. In the final quarter of 2024, GM's EV portfolio became 'variable profit positive' thanks to production scale efficiencies, lower material costs and expansion of the portfolio with the Cadillac Escalade IQ and Sierra EV launches. The company expects to cut EV-related losses further this year. Also, General Motors' deals with Vianode, Lithium Americas, LG Chemical, POSCO Chemical and Livent have boosted its EV supply chain, aligning with its long-term electrification goals. General Motors carries a Zacks Rank #5 (Strong Sell) at better-ranked stocks in the auto space are CarGurus, Inc. CARG, Strattec Security Corporation STRT and Michelin MGDDY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for CARG's 2025 sales and earnings implies year-over-year growth of 4.96% and 25%, respectively. EPS estimates for 2025 and 2026 have improved 30 cents and 44 cents, respectively, in the past 30 Zacks Consensus Estimate for STRT's fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and 91 cents, respectively, in the past 30 Zacks Consensus Estimate for MGDDY's 2025 sales and earnings implies year-over-year growth of 0.43% and 37.76%, respectively. EPS estimates for 2025 and 2026 have improved a penny and 4 cents, respectively, in the past seven days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Motors Company (GM) : Free Stock Analysis Report Strattec Security Corporation (STRT) : Free Stock Analysis Report Michelin (MGDDY) : Free Stock Analysis Report CarGurus, Inc. (CARG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
12 hours ago
- Automotive
- Yahoo
GM CEO backs Trump's auto tariffs as a tool to help US manufacturers
General Motors CEO Mary Barra is voicing support for the Trump administration's automotive tariffs, arguing they allow U.S. automakers to compete more fairly in the international market. "For decades now, it has not been a level playing field for U.S. automakers globally with either tariffs or non-tariff trade barriers," Barra, chair and CEO of General Motors, said at The Wall Street Journal's Future of Everything conference Wednesday. "I think tariffs are one tool that the administration can use to level the playing field." On Thursday, a federal appeals court made the decision to allow U.S. President Donald Trump's tariffs to remain in effect temporarily. In response to Trump's 25% tariff on all imported automobiles and automobile parts, General Motors is continuing to take steps to strengthen its North American manufacturing. Trump Tariffs Face Legal Battle As Federal Appeals Court Temporarily Blocks Trade Ruling "We already were on a process to have more resiliency in this country, and we're just going to continue on that as we move forward," Barra told "The Claman Countdown" Thursday. Read On The Fox Business App Gm To Pour $888M Into Building New V-8 Engine In New York General Motors, headquartered in Detroit, forecast earlier this month a hit of up to $5 billion in 2025 from the auto tariffs. However, Barra said the company is working to leverage some excess capacity it has in the U.S., including through an $888 million investment at a New York propulsion plant to create a next-generation V-8 engine. "We're investing in this country, and we're making those decisions as we go," she said. "Just under $900 million. [It's] the most significant engine investment we've made in history." Gm Ceo Breaks Silence Over Tariff Pressure And What It Means For Your Wallet Over the last five years, after the COVID-19 pandemic and the subsequent global semiconductor shortage, the multinational automaker has also moved more than 25% of its supply chain to the U.S. Fewer than 3% of the automaker's direct parts now come from China, she said. Earlier this month, GM also made the move to stop exporting some vehicles to China from the U.S. "There's still more deals to do, so we're waiting for that," she said. "But there are certain moves that we're already making to strengthen our North American manufacturing, because we can do that with the clarity we already have." However, as General Motors increases its U.S. investment, Barra is not making any promises when it comes to vehicle pricing for consumers. Pricing has always been dynamic, with new features and options constantly emerging, she said. "I'm saying it's a dynamic situation, and we're going even before the word tariff was something we talked about a lot," Barra said. "We're going to work to make sure we remain competitive, but I'm very pleased that the strength of our products (is) driving consumer interest."Original article source: GM CEO backs Trump's auto tariffs as a tool to help US manufacturers Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
