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GM Stock – The Faceoff: Between General Motors and Ford, it’s Canada that’s winning

The Faceoff: Between <a href="https://fintechzoom.com/general-motors/">General Motors </a> and Ford, it’s Canada that’s winning | wellandtribune.caGeneral Motors ,GM,electric vehicles,automotive industry,business,COVID-19,Arc cov economy,smg_business,InHouseArticle_thestar”/>General Motors ,GM,electric vehicles,automotive industry,business,COVID-19,Arc cov economy,smg_business,InHouseArticle_thestar”/>General Motors and Ford, it’s Canada that’s winning”/>General Motors and Ford, it’s Canada that’s winning”/>General Motors and Ford, it’s Canada that’s winning”/>General Motors , GM, electric vehicles, automotive industry, business, COVID-19, Arc cov economy, smg_business, InHouseArticle_thestar, word count: 701-1200 words, source: in-house, inHouseArticle: true, tlc_business”/>

n”,”heading”:””,”fullWindow”:false,”fullBleed”:false,”showFullBleedOnMobile”:false,”headColor”:””,”type”:”html5mobile”,”textColor”:””,”mobileImageUrl”:””,”bgColor”:””,”imageUrl”:””,”registeredOnly”:false,”linkUrl”:””,”aodaTitle”:”General Motors Company (GM)”,”internalScroll”:false,”displayStyle”:”small-up”},{“text”:”Greig Mordue, an engineering professor at McMaster University in Hamilton and a former executive at Toyota Canada, said GM and Ford have had a rough couple of decades in the context of the Canadian automotive industry, even though they’ve had a lot of positive attention within the past year.”,”type”:”text”,”isParagraph”:true},{“type”:”slimcut”},{“text”:”GM’s footprint in Canada is a “tiny percentage” of what it used to be, said Mordue. In fact, in Canada, Mordue places GM and Ford at numbers four and five out of the Big Five auto manufacturers in Canada, putting Toyota in the top spot.”,”type”:”text”,”isParagraph”:true},{“text”:”“GM and Ford have an outsized profile … in terms of public visibility, but an undersized footprint in terms of manufacturing,” he said. “And there’s a lot of discussion about electrification, but the electrification process that’s happening at GM in Canada right now from a manufacturing perspective is very modest.””,”type”:”text”,”isParagraph”:true},{“type”:”articleRelatedInlineSecondary”},{“text”:”Ford has ‘a couple of aces up its sleeve’“,”type”:”text”,”isParagraph”:true},{“text”:”Ford has been impacted by an ongoing semiconductor chip shortage, and recently had to shut down its Oakville assembly plant for three weeks as a result.”,”type”:”text”,”isParagraph”:true},{“type”:”cta”,”buttonText”:”Sign Up Now”,”buttonLink”:”/newsletters-signup.html?nsrc=article-inline-default”,”description”:”Never miss the latest news from the Welland Tribune. Sign up for our email newsletters to get the day’s top stories, your favourite columnists, and much more in your inbox.”,”title”:”Get more from the Welland Tribune in your inbox”},{“text”:”The same plant saw layoffs in 2019, and talks of closing it persisted until the federal government agreed to fund a push to bring electric-vehicle production to the plant.”,”type”:”text”,”isParagraph”:true},{“text”:”The province chipped in too.”,”type”:”text”,”isParagraph”:true},{“text”:”Dimitry Anastakis, the LR Wilson/RJ Currie chair in Canadian Business History at the University of Toronto and the Rotman School of Management, said both GM and Ford are in the midst of a “pretty profound transition” toward becoming electric-vehicle companies.”,”type”:”text”,”isParagraph”:true},{“text”:”Both face challenges in this transition, said Anastakis. “,”type”:”text”,”isParagraph”:true},{“snippet”:”n”,”heading”:””,”fullWindow”:false,”fullBleed”:false,”showFullBleedOnMobile”:false,”headColor”:””,”type”:”html5mobile”,”textColor”:””,”mobileImageUrl”:””,”bgColor”:””,”imageUrl”:””,”registeredOnly”:false,”linkUrl”:””,”aodaTitle”:”Ford Motor Company (F)”,”internalScroll”:false,”displayStyle”:”small-up”},{“type”:”textBreakPoint”,”insertAt”:”contentLongBreakPoint”},{“text”:”During the transition to electric vehicles, however, gasoline-run cars and trucks still dominate sales. While GM is the bigger company, and is certainly performing better financially during COVID-19, he believes Ford has a couple of aces up its sleeve: The F150 and the Mustang, two of the most popular vehicles in North America.”,”type”:”text”,”isParagraph”:true},{“type”:”relatedStories”,”relatedStories”:[{“url”:”https://www.wellandtribune.ca/ts/business/2021/05/01/the-faceoff-the-steep-rise-in-lumber-price-means-good-times-for-forestry-giants-but-resolutes-hedging-loss-makes-canfor-the-better-bet.html”,”assetId”:”e4bf4e4a-c3d1-422a-8d56-d6f2bff6ba52″,”headline”:”The Faceoff: The steep rise in lumber price means good times for forestry giants, but Resolute’s hedging loss makes Canfor the better bet”,”abstract”:”The line on lumber: Canfor vs. Resolute Forest Products”,”image”:{“origImageSize”:”1200×799″,”lastmodified”:1619803425246,”alt”:”The price of lumber has tripled to roughly $1,300 (U.S.) per thousand board feet since last June, partly because of increased demand from consumers working from home during COVID-19.”,”url”:”/content/dam/thestar/business/2021/05/01/the-faceoff-the-steep-rise-in-lumber-price-means-good-times-for-forestry-giants-but-resolutes-hedging-loss-makes-canfor-the-better-bet/lumber.jpg”,”sizes”:{“1:1”:{“small”:”https://images.thestar.com/XRTfK5oi8ua6tA7KLGs0-HuyssM=/100×100/smart/https://www.wellandtribune.ca/content/dam/thestar/business/2021/05/01/the-faceoff-the-steep-rise-in-lumber-price-means-good-times-for-forestry-giants-but-resolutes-hedging-loss-makes-canfor-the-better-bet/lumber.jpg”},”3:2″:{“small”:”https://images.thestar.com/QqvFd6DDp0MsesL1NWy8ON6FVrI=/114×76/smart/https://www.wellandtribune.ca/content/dam/thestar/business/2021/05/01/the-faceoff-the-steep-rise-in-lumber-price-means-good-times-for-forestry-giants-but-resolutes-hedging-loss-makes-canfor-the-better-bet/lumber.jpg”,”medium”:”https://images.thestar.com/uruMqIudlbN3k-lZ_-i0zXUuGpQ=/330×220/smart/https://www.wellandtribune.ca/content/dam/thestar/business/2021/05/01/the-faceoff-the-steep-rise-in-lumber-price-means-good-times-for-forestry-giants-but-resolutes-hedging-loss-makes-canfor-the-better-bet/lumber.jpg”,”large”:”https://images.thestar.com/mtZKdr4Rovudk7GZRGg5FIx0fwo=/690×460/smart/https://www.wellandtribune.ca/content/dam/thestar/business/2021/05/01/the-faceoff-the-steep-rise-in-lumber-price-means-good-times-for-forestry-giants-but-resolutes-hedging-loss-makes-canfor-the-better-bet/lumber.jpg”},”21:9″:{“large”:”https://images.thestar.com/slI1133W2rp32h1AZ1_Uav58iGk=/1080×460/smart/https://www.wellandtribune.ca/content/dam/thestar/business/2021/05/01/the-faceoff-the-steep-rise-in-lumber-price-means-good-times-for-forestry-giants-but-resolutes-hedging-loss-makes-canfor-the-better-bet/lumber.jpg”}}},”labels”:{“section”:”Business”,”trust”:null,”special”:null},”enableConversations”:false,”enableLivechat”:false,”publishedepoch”:1619859600000},{“url”:”https://www.wellandtribune.ca/ts/business/2021/04/24/the-faceoff-snc-lavalin-is-off-the-world-banks-blacklist-but-catching-up-with-canadas-largest-engineering-firm-wsp-global-will-be-difficult.html”,”assetId”:”b184c523-c84e-4bc3-a54a-e6af1515e65c”,”headline”:”The Faceoff: SNC-Lavalin is off the World Bank’s blacklist but catching up with Canada’s largest engineering firm WSP Global will be difficult”,”abstract”:”SNC-Lavalin is Canada’s best known engineering firm but WSP Global is the biggest by leaps and bounds.”,”image”:{“origImageSize”:”1200×645″,”lastmodified”:1619441933696,”alt”:”SNC-Lavalin lost close to $1 billion in 2020. But, analysts say a smaller, leaner, SNC-Lavalin could well become a solid profit generator again. \”,”url”:”/content/dam/thestar/business/2021/04/24/the-faceoff-snc-lavalin-is-off-the-world-banks-blacklist-but-catching-up-with-canadas-largest-engineering-firm-wsp-global-will-be-difficult/snc_lavalin_2.jpg”,”sizes”:{“1:1”:{“small”:”https://images.thestar.com/3aqTvaiJRfNCPq3dv5BsiPuRp_0=/100×100/smart/https://www.wellandtribune.ca/content/dam/thestar/business/2021/04/24/the-faceoff-snc-lavalin-is-off-the-world-banks-blacklist-but-catching-up-with-canadas-largest-engineering-firm-wsp-global-will-be-difficult/snc_lavalin_2.jpg”},”3:2″:{“small”:”https://images.thestar.com/_Nyaq1OYxtn4vuA6ozUEK3G8hLE=/114×76/smart/https://www.wellandtribune.ca/content/dam/thestar/business/2021/04/24/the-faceoff-snc-lavalin-is-off-the-world-banks-blacklist-but-catching-up-with-canadas-largest-engineering-firm-wsp-global-will-be-difficult/snc_lavalin_2.jpg”,”medium”:”https://images.thestar.com/c-887YD4wYnD5PgBHzWDg3jQX7c=/330×220/smart/https://www.wellandtribune.ca/content/dam/thestar/business/2021/04/24/the-faceoff-snc-lavalin-is-off-the-world-banks-blacklist-but-catching-up-with-canadas-largest-engineering-firm-wsp-global-will-be-difficult/snc_lavalin_2.jpg”,”large”:”https://images.thestar.com/AJ3NKXypW2wKjhJuQXyg6Y7VyBg=/690×460/smart/https://www.wellandtribune.ca/content/dam/thestar/business/2021/04/24/the-faceoff-snc-lavalin-is-off-the-world-banks-blacklist-but-catching-up-with-canadas-largest-engineering-firm-wsp-global-will-be-difficult/snc_lavalin_2.jpg”},”21:9″:{“large”:”https://images.thestar.com/Rpq03m-9TtZ3ny_n-lsMvzrHa3M=/1080×460/smart/https://www.wellandtribune.ca/content/dam/thestar/business/2021/04/24/the-faceoff-snc-lavalin-is-off-the-world-banks-blacklist-but-catching-up-with-canadas-largest-engineering-firm-wsp-global-will-be-difficult/snc_lavalin_2.jpg”}}},”labels”:{“section”:”Business”,”trust”:null,”special”:null},”enableConversations”:false,”enableLivechat”:false,”publishedepoch”:1619254800000},{“url”:”https://www.wellandtribune.ca/ts/business/2021/04/10/the-faceoff-quebecors-results-miss-expectations-while-shaw-eyes-a-deal-for-the-ages.html”,”assetId”:”18762b68-69ce-4a83-be58-fd8916ea546f”,”headline”:”The Faceoff: Quebecor sees a revenue boost, while Shaw eyes a deal for the ages”,”abstract”:”It’s Shaw Communications vs. Quebecor Inc. and the sought after prize is wireless carrier Freedom Mobile.”,”image”:{“origImageSize”:”1200×866″,”lastmodified”:1618100959453,”alt”:”Quebecor Inc. CEO Pierre Karl Peladeau told a parliamentary committee he’d be interested in taking Freedom Mobile off Rogers’ hands if it’s forced to divest assets, in the event its take over of Shaw Communications is approved.”,”url”:”/content/dam/thestar/business/2021/04/10/the-faceoff-quebecors-results-miss-expectations-while-shaw-eyes-a-deal-for-the-ages/shaw.jpg”,”sizes”:{“1:1”:{“small”:”https://images.thestar.com/dEnB5rm9sdhwIDobFCNgO-N3O8I=/100×100/smart/https://www.wellandtribune.ca/content/dam/thestar/business/2021/04/10/the-faceoff-quebecors-results-miss-expectations-while-shaw-eyes-a-deal-for-the-ages/shaw.jpg”},”3:2″:{“small”:”https://images.thestar.com/a3L2wGmb3oQzVwvZyyIknzRAkCs=/114×76/smart/https://www.wellandtribune.ca/content/dam/thestar/business/2021/04/10/the-faceoff-quebecors-results-miss-expectations-while-shaw-eyes-a-deal-for-the-ages/shaw.jpg”,”medium”:”https://images.thestar.com/PsKytdPbRorjF41CLLCRiE9m9Pk=/330×220/smart/https://www.wellandtribune.ca/content/dam/thestar/business/2021/04/10/the-faceoff-quebecors-results-miss-expectations-while-shaw-eyes-a-deal-for-the-ages/shaw.jpg”,”large”:”https://images.thestar.com/YGTHF2vBmc1UWksn3zInj50-PkQ=/690×460/smart/https://www.wellandtribune.ca/content/dam/thestar/business/2021/04/10/the-faceoff-quebecors-results-miss-expectations-while-shaw-eyes-a-deal-for-the-ages/shaw.jpg”},”21:9″:{“large”:”https://images.thestar.com/7FpiIrMThDRuNm43zXIAuN9p-Is=/1080×460/smart/https://www.wellandtribune.ca/content/dam/thestar/business/2021/04/10/the-faceoff-quebecors-results-miss-expectations-while-shaw-eyes-a-deal-for-the-ages/shaw.jpg”}}},”labels”:{“section”:”Business”,”trust”:null,”special”:null},”enableConversations”:false,”enableLivechat”:false,”publishedepoch”:1618045200000}]},{“text”:”“General Motors … is further ahead, simply because they started further ahead,” he said. “,”type”:”text”,”isParagraph”:true},{“text”:”“While Ford doesn’t have the same kind of profitability as General Motors , it doesn’t have the same range of potential vehicles coming down the pipe, it still has a number of vehicles that are going to position it really well,” said Anastakis.”,”type”:”text”,”isParagraph”:true},{“text”:”Ford’s electrification program is still several years away from being realized, said Mordue.”,”type”:”text”,”isParagraph”:true},{“type”:”ad”,”heading”:”ARTICLE CONTINUES BE(LOW)“,”name”:”ArticleThirdBigBox”,”display”:”medium-down”,”pos”:”3″,”interstitial”:true,”sizes”:[[300,250]]},{“text”:”“It’s all very tenuous and we’re spending a lot more time talking about the promise of electrification, than the actual, you know, nuts and bolts of what it looks like.””,”type”:”text”,”isParagraph”:true},{“text”:”Bottom Line“,”type”:”text”,”isParagraph”:true},{“text”:”GM might look like the better bet right now, but experts say the proof will be in the electric-vehicle pudding; and that’s years away from being ready to taste. “,”type”:”text”,”isParagraph”:true},{“type”:”textBreakPoint”,”insertAt”:”contentEndBreakPoint”},{“text”:”“If I’m picking a winner in terms of discussing the hype and the promise of an electrified future, I think GM wins,” said Mordue. “,”type”:”text”,”isParagraph”:true},{“heading”:”Have Your Say “,”pollid”:”10826099″,”type”:”poll”},{“text”:”With files from Canadian Press, Bloomberg and William Clavey“,”type”:”endnote”},{“text”:”Rosa Saba is a Toronto-based business reporter for the Star. 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The Faceoff: SNC-Lavalin is off the World Bank’s blacklist but catching up with Canada’s largest engineering firm WSP Global will be difficult

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The Faceoff: Quebecor sees a revenue boost, while Shaw eyes a deal for the ages

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Greig Mordue, an engineering professor at McMaster University, said GM and Ford have had a rough couple of decades in the context of the Canadian automotive industry, even though they’ve had a lot of positive attention within the past year.

The two American legacy automotive companies are entering a new kind of race: the race to become leading electric-vehicle manufacturers.

That’s good news for Canada, which has seen the manufacturing footprint of both Ford and General Motors dwindle over the past two decades.

But which company will pull ahead?

GM sees pandemic boost, but is it enough?

After the closure of its Oshawa assembly plant in 2019, GM drew heavy criticism for shutting down a place where more than 23,000 employees once worked.

Last year, amid the pandemic, the company announced it was reopening the facility, albeit on a much smaller scale, to produce two models of trucks. That work, which could employ up to 2,500 workers by mid-2022, came as part of a deal with the Unifor union. The deal will see the company invest $1.3 billion in retooling the plant.

But longer-term, GM’s central plan for Oshawa is to turn it into an electric-vehicle testing and research centre. Experts have said that the auto industry’s shift to electric vehicles may help keep Canada’s manufacturing sector competitive.

The company is also investing in Ingersoll, with a plant there slated to produce an all-electric delivery van.

The pandemic also provided a surprising boost for GM — the Oshawa plant was able to pivot and make face masks, and there was also a spike in truck sales.

This week, GM reported strong first-quarter earnings, with adjusted profit of $2.25 a share, more than double what analysts predicted. It attributed this to sales of full-size and higher-margin sport utility vehicles and pickup trucks, which went up during the pandemic. However, revenues came in slightly below the consensus estimate, in part due to the cost of production cuts.

Over the past year, GM’s stock has gone from $21.89 (U.S.) to $58.17, more than doubling even as the pandemic took its toll.

Greig Mordue, an engineering professor at McMaster University in Hamilton and a former executive at Toyota Canada, said GM and Ford have had a rough couple of decades in the context of the Canadian automotive industry, even though they’ve had a lot of positive attention within the past year.

GM’s footprint in Canada is a “tiny percentage” of what it used to be, said Mordue. In fact, in Canada, Mordue places GM and Ford at numbers four and five out of the Big Five auto manufacturers in Canada, putting Toyota in the top spot.

“GM and Ford have an outsized profile … in terms of public visibility, but an undersized footprint in terms of manufacturing,” he said. “And there’s a lot of discussion about electrification, but the electrification process that’s happening at GM in Canada right now from a manufacturing perspective is very modest.”

Ford has ‘a couple of aces up its sleeve’

Ford has been impacted by an ongoing semiconductor chip shortage, and recently had to shut down its Oakville assembly plant for three weeks as a result.

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The same plant saw layoffs in 2019, and talks of closing it persisted until the federal government agreed to fund a push to bring electric-vehicle production to the plant.

The province chipped in too.

Dimitry Anastakis, the LR Wilson/RJ Currie chair in Canadian Business History at the University of Toronto and the Rotman School of Management, said both GM and Ford are in the midst of a “pretty profound transition” toward becoming electric-vehicle companies.

Both face challenges in this transition, said Anastakis.

During the transition to electric vehicles, however, gasoline-run cars and trucks still dominate sales. While GM is the bigger company, and is certainly performing better financially during COVID-19, he believes Ford has a couple of aces up its sleeve: The F150 and the Mustang, two of the most popular vehicles in North America.

General Motors … is further ahead, simply because they started further ahead,” he said.

“While Ford doesn’t have the same kind of profitability as General Motors , it doesn’t have the same range of potential vehicles coming down the pipe, it still has a number of vehicles that are going to position it really well,” said Anastakis.

Ford’s electrification program is still several years away from being realized, said Mordue.

“It’s all very tenuous and we’re spending a lot more time talking about the promise of electrification, than the actual, you know, nuts and bolts of what it looks like.”

Bottom Line

GM might look like the better bet right now, but experts say the proof will be in the electric-vehicle pudding; and that’s years away from being ready to taste.

“If I’m picking a winner in terms of discussing the hype and the promise of an electrified future, I think GM wins,” said Mordue.

With files from Canadian Press, Bloomberg and William Clavey

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GM Stock – The Faceoff: Between General Motors and Ford, it’s Canada that’s winning

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Alex Lowe

Alex Lowe

Alex is a financial writer covering forex. He is a expert financial journalist whose credits include Bloomberg, FT of London, Chicago Tribune. Contact: [email protected]

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