GM Stock On Track For Fifth Straight Day Of Loss As Q2 Vehicle Sales Decline 4.2%

GM's electric vehicles, including models co-developed with Honda, are under increased scrutiny by the NHTSA due to brake system issues. Over 20 crashes or fires and six injuries have been reported, affecting more than 1 million vehicles. The NHTSA upgraded its investigation to an engineering analysis, the highest level, after receiving reports inconsistent with GM's findings. The eBoost brake-by-wire system, used in several GM and Honda models, is under investigation.

Lenders are maintaining auto credit availability despite high delinquency rates. GM faces expanded investigations into engine failures and braking systems. Renault reports EV sales surge in Europe, with EVs making up over 50% of its UK orders. Unifor and GM reach tentative labor agreements in Ontario.

U.S. automaker stocks fell Monday after President Trump announced a 50% tariff increase on Canadian imports starting January 1, 2027. Ford (down 2.3%), Tesla (down 2.6%), GM (down 0.9%), and Stellantis (down 3.1%) were affected. Trump stated the tariffs aim to reduce the U.S.-Canada trade deficit and encourage domestic production.

GM and Tesla are increasingly focusing on software subscription revenue. Tesla's Full Self-Driving (FSD) feature generated $596M in 2024, with $326M in Q3 2024. GM's deferred revenue hit $5B, up 90% YoY, with Super Cruise subscribers reaching 500,000. Both companies aim to grow software-driven recurring revenue.

Unifor and General Motors reached tentative labor agreements for 4,600 workers in Ontario, including wage and benefit increases. The deals follow a similar pattern to Unifor's agreement with Ford. Ratification votes are scheduled for August 29-30. GM Canada's managing director noted the deal aligns with their investments in Canadian manufacturing.

The NHTSA is investigating GM's 6.2-liter V8 engine (L87) after 499 post-recall failure complaints. The issue affects 997,743 vehicles from 2021-2026, with reports of crashes, fires, and injuries. GM blames supplier quality issues, while independent analysis points to crankshaft ridges causing engine failure. The L87 is used in several GM trucks and SUVs, including the Chevrolet Silverado and GMC Sierra. GM plans to replace the engine with a new Gen 6 small-block V8.