What are the expectations and challenges of major global auto companies in 2025?

The year 2024 was full of events for major automakers, as sales rose in the United States and prices stabilized for the most part, but many changes are coming to the industry, whether locally or internationally, during 2025, according to what the American Yahoo Finance network reported.

Car sales in America

Standard & Poor’s Global Mobility expects U.S. auto sales to reach a seasonally adjusted annual rate of 16.2 million units in 2025, which represents an estimated 1.2% increase compared to the 16.0 million units expected in 2024, S&P says. Bowers said it continues to reflect an uncertain environment for U.S. auto sales.
“Vehicle price levels are expected to decline but remain high and interest rates are expected to turn further lower but inflation levels are expected to remain high,” the company’s North American light vehicle sales director, Chris Hobson, said in its 2025 report.

GM

The Big Three saw strong performance in 2024 with strong sales of their generally higher-priced vehicles such as trucks, SUVs and electric cars.
GM shareholders were rewarded with a 25% stock rise for the year supported by stock buyback programs.
GM announced a $6 billion stock buyback program in June this year following a $10 billion stock buyback program in November 2023.
But GM may have some problems with its electric vehicles if the tax credit disappears under the Trump administration.
“If these electric vehicle models, especially for General Motors, are not eligible for tax credits next year, it will impact their ability to expand and ultimately our growth assumption,” analyst Nishit Madlani told Yahoo Finance.
Despite the company’s strong year, it faced some surprises late in the year, such as a $5 billion loss in China and the divestment of its robotaxi business.

Ford company

Ford, General Motors’ arch-rival, had good sales this year as well, but things were not going well for the company.
The company trimmed its 2024 profit forecast due to problems with suppliers and is still losing billions of dollars in its electric vehicle business.
Ford will provide a full update on the outlook and profitability of its electric vehicle business in the first half of 2025.

Stellantis cars

The situation is not much better for Stellantis, which includes Dodge, Ram, Jeep, Chrysler, Fiat, and others.
Management changes are expected to bring in a new CEO in 2025 and a new plan.
Toyota
Toyota, the largest automaker in the world and the biggest competitor to the big three American companies, is witnessing a remarkable year, as its sales increased by only 5.5% in America from the beginning of the year until the third quarter, and sales of “electric vehicles” increased by an astonishing 58% since the beginning of the year.
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Honda and Nissan

The two companies, “Honda” and “Nissan,” are working to merge, and the deal is expected to be completed in 2026, but this will allow the two Japanese automakers to match Toyota in terms of size.
“There is potential for the combined company to be better prepared to meet the competitive threat from new players as well as be more competitive with Toyota,” said Stephanie Brinley, an analyst at Standard & Poor’s Global Mobility.

Volkswagen

The German company Volkswagen, which was previously the crown jewel of the automotive sector in Germany and the number one car manufacturer in the world, has gone through a difficult year.
The company’s stagnation in important regions such as Europe and China is a major problem, and development difficulties with its internal software and electric car development have led to costly delays.
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The situation in China, once a leading region for the company, will not improve any time soon.
Meanwhile, electric vehicle sales saw a halving in the third quarter.