Ally Faces Credit Crunch, GM Employees On The EV Train, The EV Slowdown Myth

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

Shoot us a Text.

Today, we pause and reflect on the events of 9/11/2001. No crisis can win.

It’s Wednesday and DG is back for round two. We’re talking about how Ally Financial is dealing with consumer credit challenges, how GM is drawing a line in the sand for its salaried employees and busting the EV slowdown myth.

Show Notes with links:

• Ally Financial is grappling with growing credit challenges as high inflation impacts borrowers, resulting in increased delinquencies. Shares plummeted 17.62% on Sept. 10, signaling the pressure the lender faces
  • Delinquencies in Ally’s retail auto sector increased by 20 basis points in July and August compared to Ally’s expectations, and net charge-offs (unrecoverable debts) increased by 10 basis points during the same period.
  • Borrowers are also cutting back on loans amidst high interest rates.
  • Ally has sold its lending business to Synchrony Financial to address its credit issue.
  • CFO Russell Hutchinson specifically mentioned that the number of borrowers in the 61+ day delinquency category has become a point of concern, with more underperformance expected in this bucket

• General Motors is intensifying its push toward an all-electric future, making it clear that salaried employees must align with its EV vision or move on. A series of organizational changes this year underscores GM’s dedication to selling only electric vehicles by 2035.
  • GM is downsizing its global headquarters to streamline operations and create cost efficiencies.
  • As we covered early this year, the automaker revised how it evaluates employee performance, with a stronger focus on productivity and innovation.
  • New bonus metrics now align more closely with the company's EV goals, emphasizing those who contribute to the transition.
  • Remote work privileges have been reduced for some employees to promote better in-office collaboration and push productivity.
  • The goal is to become more agile and tech-focused, modeled after top-performing companies in the technology sector.
• Despite misleading headlines claiming otherwise, EV sales continue to rise globally, though growth percentages have naturally slowed as the market expands. Media reports about an EV sales “slump” overlook key data points.
  • Misinformation has led some to believe EV sales are dropping, but the reality shows the opposite: gas-powered car sales are actually declining.
  • Despite declines from major automakers like GM, VW, and Tesla, overall EV sales in the U.S. still increased by 7% in Q1, reflecting continued growth in the market.
  • EV sales growth rates have slowed as expected but remain positive globally, rising about 10% in advanced economies,
  • From the Electrek article, “Each journalist who has spent the last year perpetuating the myth of an EV sales slowdown could have read any one of our articles, or googled a single number showing year-over-year EV sales in any region or for most countries and most brands, and found that they are still goin

Hosts: Paul J Daly and Kyle Mountsier
Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/

Read our most recent email at: https://www.asotu.com/media/push-back-email