Stellantis, the multinational automaker, is working hard to address its current issues in North America and beyond as it faces a difficult first half of 2024. The company reported disappointing financial results, with net income falling by 48 percent to $6.1 billion. Stellantis' operating margin on adjusted EBIT also dipped below its target of double-digit margin for the year. Chief Executive Officer Carlos Tavares acknowledged the company's underperformance and highlighted the decline in margins in North America, its key profit region.

To tackle operational challenges, Stellantis is taking decisive actions, including reducing inventory, particularly in North America. Chief Financial Officer Natalie Knight stated that the company plans to cut production and lower prices in the region to meet supply and demand. Stellantis is also looking to significantly reduce labor costs and logistics expenses, aiming to alleviate high inventory levels and recent executive departures.

The future of luxury brand Maserati within the Stellantis portfolio is being reconsidered, as the company evaluates the best path forward. Despite these struggles, Stellantis is optimistic that the launch of 20 new models across its range of brands in the second half of 2024 will boost its prospects.

In contrast, Hyundai reported record-breaking profits for the second quarter of 2024, surpassing analysts' expectations. The company achieved this feat by capitalizing on strong hybrid sales, which offset the lower performance of electric vehicles. Operating profit for the quarter totaled $3 billion, marking a record high since 2010. Hyundai's revenue also rose 6.6 percent to 45 trillion won.

Hyundai's embrace of hybrids and SUVs, such as the new Santa Fe, contributed to its success. The company sold approximately 122,000 hybrid vehicles in the second quarter, accounting for 11.6 percent of total deliveries. The market share for hybrids in the U.S. also increased to 15 percent, signaling continued growth. Hyundai plans to launch new hybrid models, including the Tucson in Europe and the Casper Electric in South Korea, to further drive growth in the second half of 2024.

The United Auto Workers (UAW) union and Lear Corporation reached a tentative agreement, ending a three-day strike by 500 workers at a Lear factory in Missouri. The strike had forced General Motors (GM) to idle its nearby Wentzville Assembly plant, impacting the production of midsize pickup trucks and cargo vans. With the strike resolved, GM resumed operations at the plant on Thursday morning. The agreement includes a wage increase for the workforce, but further details will be provided in printed materials that will be discussed and voted on by the workers.

Additionally, Toyota is reportedly planning to construct a battery plant in Fukuoka, Japan, exclusively for its luxury brand Lexus. The aim is to establish a supply chain for battery electric vehicles (BEVs) in the region as part of Toyota's strategy to strengthen its battery production capacity. While Toyota has not officially announced the project, it aligns with the company's goal to introduce BEVs globally from 2026 and achieve annual sales of 3.5 million EVs by 2030.

These developments highlight the challenges faced by Stellantis, the success of Hyundai's hybrid strategy, the resolution of the UAW and Lear strike, and Toyota's plans for future battery production.