Deutsche Bank’s analyst Edison Yu trimmed on Monday the firm’s price target on both General Motors and Ford by over 20%.
In a new research note, the firm said it believes the Detroit automakers “will deliver solid 1Q results compared to expectations”, despite “withdrawing full-year guidance as they implement tariff mitigation strategies.”
Yu trimmed the firm’s price target on General Motors by 26% (to $43) and Ford’s by 22% — to $7.00 from $9.
The companies produce most of their vehicles in the United States but still rely on imports. Ford produces mainly in the US (77%), with 21% of its manufacturing in Canada and Mexico, and 2% in other regions.
General Motors‘ production is 52% domestic, the rest being imported from Canada, Mexico and other regions.
The bank estimates that the companies will both see gross cost increases exceeding $10 billion from the tariffs. Despite the 90-day pause announced by the U.S. President on the tariffs as negotiations take place, the duties on imported vehicles and auto parts continue to apply.
GM
“As such, we reluctantly downgrade GM to Hold from Buy given structural uncertainty around US industrial/tariff policy,” Yu noted, adding that “while the stock already trades at a low multiple, we worry it may be an impairment asset for several years.”
Deutsche Bank’s new price target for the group is just 2% below Friday’s closing price of $43.63.
As of the time of writing, GM is trading 0.3% lower at $43.47.
Last week, UBS reduced the company’s price target by 20.3% to $51. Analyst Joseph Spak estimated on a new research note that GM‘s volumes to decrease 9% year over year in 2025, followed by “an additional 4% in 2026,” due to the tariffs impact.
The firm also noted that Mexico and Canada-made vehicles could suffer a $4,300 cost increase per unit produced. No “meaningful changes” are expected in vehicles produced domestically, as long as the United States-Mexico-Canada Agreement (USMCA)’s “parts exemption” — which allows tariff-free trade on certain vehicle components — remains in effect.
The company plans to make only electric vehicles by 2035. In the first three months of the year, its EV sales rose 17% compared to last year, with Chevrolet becoming the fastest-growing EV brand in the U.S.
GM also said it expects to lead the market in full-size pickups and SUVs. The company aims “to be again the #2 seller electric vehicles in the U.S. with sales up 94% in the quarter.”
Ford
Deutsche Bank reaffirmed the ‘Hold’ rating on Ford shares. Based on Friday’s closing price of $9.33, Deutsche Banks’ new price target on Ford implies a downside of 25%.
As of the time of writing, Ford is trading 1% lower at $9.24. The stock has dropped 24% in the past twelve months.
The firm estimates full-year U.S. light vehicle sales to fall to 15.4 million from 16.0 million in 2025.
Goldman Sachs’ analyst Mark Delaney cut the company’s price target last week by 18.2% to $9 citing increased global competition, weaker consumer demand, and higher costs from tariffs. Bernstein also cut its price target to $7.00, as the firm expects Ford‘s shares to “remain under pressure.”
Ford’s U.S. sales fell 1.3% year over year in the first quarter, with 501,291 vehicles sold, as the brand transitioned from the Ford Edge and Transit Connect models, which were discontinued.
However, pickup and EV sales grew in the last three months. The company sold 22,550 fully electric vehicles, up 11.5% from the same time last year.
Electric vehicles sales including hybrids rose 25.5% to over 73,000 units from the same period last year. The Maverick hybrid pickup, starting at $23,920, was Ford’s top-selling vehicle.
As plans for the duties on vehicle imports were revealed, JPMorgan analyst Ryan Brinkman warned in late March that a 25% tariff could wipe out General Motors’ global profits and cut Ford Motor Co.’s profits by roughly 75%.
He estimated the impact would cost GM around $14 billion—nearly all of its global earnings—and Ford about $6 billion, or three-quarters of its total profits.
