Detroit 3 earnings show a mix of strength and uncertainty in the economy

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The Detroit 3 had strong first-quarter results but face the potential for rising incentives, high commodity prices and more expensive UAW contracts.

The Detroit Three's continued recovery from global supply chain shortages led to improved first-quarter financial results, but that recovery could be threatened amid an uncertain economic outlook.

Langan said he expects Ford's full-year earnings to fall short of its guidance and of its 2022 results. Ford last week cited a nine-per-cent increase in vehicle shipments as a key driver of its increased income, revenue and profit margins. Stellantis said its U.S. inventory had risen to 1.3 million new vehicles at the end of March, reflecting a return to more normal levels.

The company stands to continue benefiting from its combustion business this year as it prepares to launch a redesigned line of Super Duty pickups as well as a next-generation Mustang. While Ford's stock fell slightly the day after earnings on concerns over the rest of the year, some analysts said CEO Jim Farley and his team are setting up the company for future success.

 

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