Ford, GM Exhibit Differing Cultures In Same Industry
The investment cases for America’s largest automakers are increasingly diverging around electric and autonomous vehicles, Michael Wayland reported for CNBC.
Photo Insert: GM and Ford have consistently attempted to outgun each other in sales, performance, and styling of new vehicles.
GM is diversifying as much as possible around its emerging battery and self-driving vehicle businesses, while moving to exclusively offer electric vehicles by 2035. Ford recently disbanded its autonomous vehicle business to concentrate more on nearer-term technologies and EVs.
“Same industry. Two different companies.”
That’s how influential Morgan Stanley auto industry analyst Adam Jonas recently described GM and Ford — bitter rivals for more than a century. The two have consistently attempted to outgun each other in sales, performance, and styling of new vehicles.
GM has gained an edge in recent years on the back of better financials and early moves into electric and autonomous vehicles. GM most recently reported third-quarter results that, compared to Ford, knocked it out of the park.
Wall Street analysts say they’re watching the burgeoning segments for when, or if, one of the Detroit automakers can distinguish itself.
“It’s a very competitive industry, and they all tend to be pretty fast followers from that regard,” said Edward Jones analyst Jeff Windau. “It becomes difficult to really be differentiated over a long period of time.”