As we enter the second half of 2020, the Fiat Chrysler Automobiles (NYSE: FCAU), General Motors (NYSE: GM) and Ford Motor Company (NYSE: F) are stepping up their game in the truck and SUV segment. Despite the fact we are still far from beating the COVID-19 pandemic, the automakers are increasing their capital spending on the EV segment.
Fiat Chrysler Automobiles
Fiat Chrysler delivered a loss of $1.24 billion during the second quarter, which marks a drop of 232% compared to last year's result. But its Stellantis chapter is set to change its circumstances. After its merger with Groupe PSA, Peugeot's maker (OTC: PUGOY), it will revamp its Warren Truck plant, just outside Detroit, to build the new Jeep Wagoneer and Grand Wagoneer. Once completed, it will add a new product to its Jeep line – a three-row SUV capable of going where there are no roads. FCA is confident it can meet the challenge posed by Ford's new line of Broncos.
But Ford's new offering does not have a three-row vehicle. And after the merger, FCAU is set to become the world's fourth largest automaker.
Ford's Bronco reboot was unveiled last month, after supposedly receiving 100,000 reservations for the two new models. Also, there is the redesigned Ford F-150 that has been postponed fourth quarter. Ford's Chief Financial Officer, Tim Stone, announced an expected profit of between $500 million and $1.5 billion in the third quarter. However, he also warned that the launches of the redesigned F-150, Bronco Sport and Mustang Mach-E will result in the company being in the red during the fourth quarter.
But the bottom line is that Ford is poised to be in a much better position for 2021 as several new products will be available for sale. Moreover, Ford recently delivered an unexpected profit of $1.1. billion for its second quarter. But it was due to a one-time $3.5 billion gain on its investment with self-driving software Argo AI, recorded on its statement of financial position as a "special item," as otherwise Ford would have delivered a loss like in the first quarter. Its better-than-expected results were attributed to an efficient operational execution that involved a safe restart of its plants while reducing costs, while its efforts were complemented by a favorable pricing environment.
General Motors also announced that it will boost the production of full-size pickup trucks by 1,000 units per month at its Fort Wayne, Indiana, plant by expanding its workforce. According to its Chief Financial Officer, Dhivya Suryadevara, GM is at the end of a sweeping change in its truck portfolio. The down time in the last three years is behind GM as this will be its new bright spot. But the giant also left its first quarter profit begin as it swung to an $800 million loss in the second quarter and burned $7.8 billion in cash.
Trucks In The Age Of Renewables
Overall, there are many developments that pickup truck owners and fans can rejoice in. Moreover, there are many new products to look forward to such as Worksport's product line of solar powered tonneau covers for pickup trucks. Worksport (OTC: WKSP) and its three new technologically advanced light truck tonneau covers will be launched in the U.S very soon. Ford F-150 has been America's best-selling pickup truck for more than four decades. But considering these developments, that may no longer be the case.
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