We’re expecting General Motors 2Q 2017 earnings and Ford 2Q 2017 earnings reports this week, with the former reporting on Tuesday and the latter releasing its numbers on Wednesday. Both automakers report before opening bell on their respective days.

U.S. auto market on the decline

Earlier this month, the major U.S. automakers reported that new vehicle sales declined for the fourth month in a row in June. New vehicle sales also missed analyst expectations even though many auto dealers offered deep discounts and looser loan terms to prospective buyers, Reuters said in early July.

Auto industry consultancy Autodata pegged the U.S. market’s seasonally adjusted annualized rate at 16.51 million new vehicle sales, which would be the weakest since February 2015 and a 2% decline from the market’s June 2016 results. Wall Street had been expecting 16.6 million vehicles for this year. The market peaked last year with 17.55 million new vehicle sales, a record high.

General Motors 2Q 2017 earnings

General Motors 2Q 2017 earnings

General Motors 2Q 2017 earnings are set to arrive Tuesday morning, a day after Reuters reported that the company is evaluating six of its cars and deciding whether they will be canceled in the next few years. Currently, big pickups, crossovers and SUVs are in, while passenger cars are out, according to industry sales trends.

According to Reuters, the vehicles that could be on the chopping block include the iconic Chevy Impala. Also under review are the Chevy Volt hybrid, Chevy Sonic, Cadillac XTS, Cadillac CT6 and Buick LaCrosse. The media outlet reports that the United Auto Workers is working with GM on the issue as the union and the automaker determine the best way to keep their factories running at full capacity.

General Motors 2Q 2017 earnings are expected to come in at $1.69 per share on $40.15 billion in sales as the automaker aims for its full-year earnings outlook of $6 to $6.50 per share. However, Wall Street is looking at the lower end of the profit range, with consensus at $6.06 per share for the full year, even though GM beat first-quarter estimates.

Ahead of the General Motors 2Q 2017 earnings report, the automaker’s stock tipped lower on Monday, falling by as much as 0.32% to $35.96 a share.

Ford 2Q 2017 earnings

Ford 2Q 2017 earnings
EME / Pixabay

Analysts peg Ford 2Q 2017 earnings at 44 cents per share, a year-over-year decline, and revenue at $37.01 billion. In last year’s second quarter, the automaker reported adjusted earnings of 52 cents per share on $39.5 billion in sales. This is the first earnings report under Jim Hackett as CEO, as he replaced Mark Fields in May.

Ford’s U.S. sales slipped 3.3% year over year in the second quarter, although analysts believe it will benefit from a stronger vehicle mix, given that consumers are preferring more expensive trucks and SUVs over passenger cars.

On Monday, two days before the Ford 2Q 2017 earnings report, the automaker’s stock slumped by as much as 1.56% to $11.35 per share.