Legacy Automakers in Transition: VW, Toyota, GM, Stellantis — 2026-10-23
General Motors reported record Q3 revenue of $50 billion and announced a $20 billion share buyback while simultaneously closing a battery plant and tempering EV ambitions due to weak demand. Meanwhile, Stellantis faces union strikes and production halts after a 12% drop in North American shipments, and German automakers continue to grapple with significant job cuts and declining Chinese sales.
Legacy Automakers in Transition: VW, Toyota, GM, Stellantis — 2026-10-23
Top developments
GM posts record revenue but closes EV battery plant
General Motors reported third-quarter revenue of $50.0 billion, a 2.9% increase, and net income of $3.3 billion, beating Wall Street estimates. Despite the strong financial performance, driven by Silverado and Sierra sales, GM announced the closure of its Brownstown Battery Assembly plant and the repurposing of a Detroit facility originally intended for hydrogen fuel cell development. The company cited dwindling EV demand as the primary reason for scaling back these specific infrastructure projects, although it continues to invest in next-generation EV architectures.
GM approves $20 billion share buyback
In conjunction with its earnings report, GM’s board approved a new $20 billion share repurchase authorization with no specified end date. The company also raised its adjusted automotive free cash flow outlook and narrowed its full-year 2026 earnings guidance. This move signals confidence in cash generation despite the strategic pivot away from certain EV infrastructure projects.
Stellantis shipments drop 12% in North America; union strikes loom
Stellantis reported Q3 2026 consolidated shipments of 1.3 million units, a 1% year-over-year decline, with North American volumes falling 12% due to planned production shutdowns. Conversely, shipments in Enlarged Europe rose 10%, driven by battery electric vehicle growth. Tensions remain high as unions have voted to strike, and the company has halted Wrangler production, further complicating its turnaround efforts.
German automakers face job cuts and China sales slump
The German automotive industry continues to contract, with BMW announcing plans to cut approximately 8,000 jobs by the end of 2027. This follows broader sector trends where VW, BMW, and Mercedes-Benz are struggling with declining sales in China, a critical market for their profitability. Recent data indicates Q3 2026 deliveries for VW fell 14.3% and Audi dropped 19.7% in China, while BMW saw a 6.3% decline.
Local view
In Japan, media coverage highlights the widening gap between Toyota and its domestic rivals, Nissan and Honda. Reports suggest that Nissan and Honda share a "common weakness" in failing to produce vehicles that match Toyota's market dominance, even as Toyota faces its own delivery delays. Meanwhile, in Europe, Le Monde reports that a new Franco-German deal on auto subsidies, requiring 70% European components, leaves Renault exposed while sparing Stellantis, which has a more localized supply chain footprint.
Context & numbers
- GM Q3 2026: Revenue $50.0 billion (+2.9% YoY); Net income $3.3 billion; Quarterly dividend $0.18.
- Stellantis Q3 2026: Total shipments 1.3 million units (-1% YoY); North America -12%; Enlarged Europe +10%.
- BMW Q3 2026: Global EV deliveries 110,257 units (+7.2% YoY).
- German China Sales Q3 2026: VW -14.3%, Audi -19.7%, BMW -6.3%.
On the radar
- EU EV Mandate Softening: Lawmakers are adjusting the 2035 Green Deal target to allow e-fuels and a slower transition, aiming for industrial stability.
- GM Hybrid Expansion: GM is adding hybrid models to its portfolio to bridge the gap to full electrification, responding to rising fuel prices and consumer demand.
- Ford-Renault-VW Alliance: Ford, Renault, and VW are teaming up in Europe to combat Chinese vehicle competition and lobby for legislative changes.
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