The automotive market has strengthened considerably since the first half of 2020 forced vehicle manufacturers to shut production. General Motors, Ford Motors, and Toyota Motor Corp. all reported positive sales figures for the end of 2020 into the beginning of 2021.
General Motors reported February 10 that it pulled in $6.4 billion in 2020, a 4.5% loss relative to 2019 profits. Full-year revenue fell 10.7% to $122.5 billion. For its 2020 fourth-quarter results, though, GM reported profits of $2.8 billion—night and day compared to the $194 million loss it saw in Q4 2019.
In a call with the media, CEO Mary Barra projected growth unfettered by an ongoing shortage of semiconductors currently hampering production of vehicles at several assembly plants. The Detroit-based auto giant projected $10 to $11 billion in operating profits for 2021.
Fellow Michigan automaker Ford, meanwhile, saw drops in both quarterly and full-year revenue when it announced earnings last week: 2020 revenue fell 18% to $127.1 billion, and revenue for the fourth quarter fell from $39.7 billion in the last quarter of financial year 2019 to $36.0 billion in the quarter just ended.
Despite the negative figures, Ford signaled optimism in its earnings release, highlighting one-time-costs taken on in 2020, rising operating results, and popular vehicles debuting in 2021. Ford’s quarterly operating results rose in all of its regional businesses, including notably in North America and Europe, where they rose 53% and 5.8%, respectively. The 2019 ratification of a contract with the UAW contributed to the strong North American results.
Ford CEO Jim Farley also used the earnings release to announce Ford would invest $29 billion in capital investments for electrification and autonomous driving.
Toyota, meanwhile, announced February 10 that its most recent quarter saw net profit spike. The company pulled in 838.7 billion yen, or $8.0 billion, in the three months before December, compared to about $5.34 billion for the same period in 2019. The Japanese automaker revised its profit forecast for 2021 up from $13.56 to $18.14 billion.
And Toyota isn’t alone abroad, either. Nissan and Honda both upgraded their full-year profit forecast based on recent profits driven by burgeoning sales.
