ZEV mandate consultation: van sector reaction

The Zacks Domestic Auto industry shows resilience, with new-vehicle sales remaining healthy. Affluent consumers support demand, while tax benefits may boost purchases. EV market recovery is uneven. Companies like General Motors (GM), PACCAR (PCAR), Ford (F), and Harley-Davidson (HOG) are highlighted. The industry's Zacks Rank is #67, indicating strong near-term prospects. GM raised its full-year adjusted free cash flow guidance to $9.5-$11.5 billion. PCAR expects Parts sales growth of 3-5% in 20

Stellantis (NYSE: STLA) is reviving Jeep production in China, developing two Jeep and two Peugeot EVs with Dongfeng Motor Group. The vehicles will be exported globally starting 2027, leveraging China's EV technology. This move supports Stellantis' $70 billion turnaround, focusing on Jeep as a core brand.

U.S. President Trump announced a 50% tariff on Canadian vehicles, parts, and trucks, effective January 1, doubling the current 25% rate. Automakers like Ford, GM, Stellantis, Toyota, and Honda face higher costs on key models. Canadian-built vehicles made up 6% of U.S. sales in 2025, per Barclays. Industry executives hope for a deal before the deadline, as tariffs could disrupt the U.S. automotive supply chain.

Ford (F) is collaborating with Geely to build a compact SUV using Geely's GEA platform in Spain. Centurion Industries, owned by Geely, will pay Ford $259 million for a 34% stake in the Valencia factory. The partnership aims to leverage Geely's low-cost structure and advanced EV technology, with Ford planning to differentiate the product with rally styling. Ford is also refreshing 80% of its North American lineup and adding affordable models.

U.S. President Trump imposed 50% tariffs on Canadian vehicles and auto parts, effective January 1, doubling previous 25% tariffs. Automakers like Ford, GM, Stellantis, Toyota, and Honda face added costs on key models. Canadian-built vehicles account for 6% of U.S. sales, per Barclays. Industry executives hope for a deal before the deadline.

Canada's retaliation tariffs on U.S. imports, effective September 8, will impact General Motors (GM), Ford (F), and Stellantis (STLA). GM faces $2.5B–$3.5B in gross tariff expenses, while Ford, with a -4.4% net margin and 461% debt-to-equity ratio, is most exposed. Stellantis has lost 53.8% year-to-date. The S&P 500 Automobiles index has fallen ~19% year-to-date.