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Ford and General Motors enter a new phase of uncertainty on prices and demand



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Attendees view a Ford Mustang Mach-E GT during opening day of the 2022 New York International Auto Show (NYIAS) in New York, on Friday, April 15, 2022.Jeenah Moon | Bloomberg | Getty ImagesDETROIT – Let’s talk about pricing power.At least, General Motors and Ford Motor likely will be doing that this week as they report fourth-quarter results and 2023 guidance, with Wall Street watching for signs of weakening consumer demand and a tougher pricing landscape.Either issue would mean lower profits this year for the automakers, which are expected to report relatively solid fourth-quarter results over subdued year-ago earnings. GM is expected to report fourth-quarter earnings per share of $1.69, a 25% increase over the year-ago period, while Ford is expected to report EPS of 62 cents, more than doubling the 26 cents it posted a year earlier, according to Refinitiv consensus estimates.Automakers have reported record results in recent years amid the tight supply of new vehicles and resilient consumer demand. They have banked on sustained pent-up demand as inventory levels normalize, hoping to avoid heavy discounts or incentives to move vehicles.But that scenario is slowly neutralizing. And that leaves new vehicle prices and profits in flux.Cox Automotive reports the Detroit automakers have among the highest inventory levels in stock, noting vehicle numbers differ greatly by brand. Plus, incentives are slowly rising.There’s overall concern that the pent-up demand was largely eroded amid recessionary fears and affordability issues resulting from rising interest rates and record-high prices of nearly $50,000 on average for a new vehicle.Ford on Monday cut the starting prices on its electric Mustang Mach-E, weeks after EV industry lead …

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