Detroit Automakers Report Revenue Gains Despite Rising Material and Fuel Costs

The three major American automakers reported third-quarter earnings on Wednesday, posting revenue increases while warning that the cost of building vehicles is climbing rapidly.

General Motors, Ford, and Stellantis all saw sales rise compared to the same period last year. However, company executives told investors that higher prices for steel, copper, computer chips, and diesel fuel are squeezing their margins.

Mike Wall, an analyst at Mobility Global, described the current industry situation as a mix of suspense, thrills, comedy, and horror. He noted that while truck sales remain strong, the underlying costs are creating uncertainty for next year.

Light-duty trucks drove the revenue growth. GM reported a 9% increase in light-duty truck sales over the past year. Stellantis saw U.S. pickup sales jump 34%. Ford’s F-Series continued to lead its lineup as a bestseller.

Revenue figures for the quarter showed modest growth. GM’s revenue rose 2.9%, Ford’s increased by 2%, and Stellantis’ went up 1%. The average transaction price for a new vehicle hit just over $50,000 in September, approaching a record high according to Kelley Blue Book.

Sherry Ann House, Ford’s chief financial officer, said on an investor call that customers have remained resilient despite higher fuel prices, interest rates, and inflation. She added that Ford is not yet seeing these higher fuel costs reduce demand for trucks and fleet vehicles.

The rise in diesel prices is a major factor in logistics costs. The average price for a gallon of diesel has hovered around $6.35, just below its September all-time high, according to AAA. Since many trucks that move parts and finished vehicles across the U.S.-Canada border run on diesel, higher fuel bills increase the cost of moving parts through the supply chain.

GM’s chief financial officer, Paul Jacobson, said the company expects material costs, including computer chips and diesel, to cost the company as much as $2 billion this year. GM is also paying about $2.5 billion in tariff costs, a figure that is lower than earlier forecasts due to refunds.

Ford’s CEO Jim Farley cited a similar $2 billion headwind from commodities, memory, and logistics costs. He noted that growth in software services and parts is helping to offset these expenses. Stellantis executives said they would provide more detailed cost information in the fourth quarter.

The end of the federal electric vehicle tax credit on Sept. 30, 2025, has also affected sales. GM reported a 6% drop in third-quarter sales, partly due to a smaller EV market. Jacobson said the company is right-sizing its EV production to align with current demand while keeping an eye on global trends.

EV sales in the U.S. have stabilized after an initial post-credit drop, currently accounting for about 6% of new car sales according to Edmunds. Hybrids, however, are seeing a surge in popularity, with sales up 27% in the past year.

Sam Fiorani, a vice president at Auto Forecast Solutions, said the transition to fully electric vehicles will take longer than originally anticipated. He expects the Detroit automakers to offer more hybrid vehicles in coming years as they adjust their product plans to match consumer behavior.