GM Tries to Convince Investors It Can Thrive Despite Mounting Challenges -- WSJ

By Sharon Terlep

It's a tricky time for car companies. General Motors is trying to convince a skeptical Wall Street it can take the heat.

"The path forward is more challenging," GM CEO Mary Barra said in a call with analysts.

Commodity costs are rising, consumers are squeezed by inflation and GM is launching new pickup trucks-a complex, high-stakes endeavor.

Barra said she still expects to deliver stronger results in 2027-provided demand holds up and costs stabilize.

She said GM has set itself up to weather upheaval, citing an improved product lineup, new revenue streams such as digital subscriptions and military business, and less reliance on discounts to sell cars.

GM shares are down 5% today despite the company posting higher third-quarter earnings (and announcing a mega buyback).

"GM beat expectations, but there's a clear trade happening," said Scott Painter, founder and CEO of car-buying website TrueCar, adding that while the carmaker's trucks powered its earnings, it sold fewer cars overall.

"Affordability is the core of that trade-off. The average American is spending more than $770 a month on a car, and one in five is over $1,000," he added.

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(END) Dow Jones Newswires

October 20, 2026 10:17 ET (14:17 GMT)