Though GM and Ford were once giants of the global auto sector, their market capitalizations have been dwarfed by Tesla. On Wednesday Tesla reported stronger-than-expected revenue and profit for the fourth quarter of 2021, but warned that supply-chain bottlenecks would continue through 2022 and likely prevent its factories from running at full capacity.
GM last year sold fewer vehicles in the U.S. than Toyota Motor Corp. -- the first time in 91 years that GM was not the No. 1-selling automaker in its home market.
GM and Ford's profits in 2021 were lifted by consumers willing to pay record-high prices for petroleum-powered pickup trucks and SUVs. In 2022, analysts are concerned the Detroit manufacturers will face a more uncertain economic environment, including rising interest rates, high oil prices and continuing supply-chain bottlenecks that could curtail production.
Analysts expect both companies to be cautious in their outlooks for 2022. Shortages of semiconductors are expected to weigh on production into the second half of the year, Bank of America wrote in a note.
"While automakers will enjoy production recovery and inventory restocking, (those) could be coupled with price declines, mix deterioration, rising input costs," Morgan Stanley said.