Where s the growth — Automakers face a tougher 2027 as costs rise, market tightensSkip NavigationMarketsPre-MarketsU.S.

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Legacy automakers face a tougher 2027 as costs rise, market tightensPublished Fri, Nov 6 20268:00 AM ESTUpdated Fri, Nov 6 20268:19 AM ESTMichael Wayland@MikeWaylandWATCH LIVEKey PointsAutomakers are warning that they're facing higher commodity, logistics and memory costs while pricing power is becoming harder to extend to consumers.Several Wall Street analysts have said companies will need continued pricing strength and additional cost savings to offset inflation, higher investment spending and a potentially weaker economy.Meanwhile, global light-vehicle production is forecast to be essentially flat in 2027 at about 91.65 million units, according to GlobalData.In this articleSTLAGMFFollow your favorite stocksCREATE FREE ACCOUNTWorkers at Ford's Kentucky Truck Plant on April 30, 2025.Michael Wayland | CNBCDETROIT — There's a growing concern that the global automotive industry may be stuck in neutral, if not reverse, heading into 2027.The auto industry — from the companies to their customers — has been surprisingly resilient this decade, but there are fears that rising costs, weaker vehicle pricing and a more challenging market could threaten profits and growth going forward.Automakers also face pressure outside the U.S.

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from an onslaught of Chinese carmakers, a thinner new-product pipeline after retreating from some all-electric plans, and company- and region-specific challenges."With investor focus increasingly shifting to 2027, the setup appears challenging," Barclays analyst Dan Levy said in an investor note last month.

"Rising inflation, continued China pressure, affordability concerns in the U.S., and a flat global production outlook suggest another year of limited earnings growth."Several Wall Street analysts have said automakers will need continued pricing strength and additional cost savings to offset inflation, higher investment spending and a potentially weaker economy just to maintain their current levels."It's a little bit more optimistic in the U.S.

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and then very pessimistic in Europe," RBC Capital Markets analyst Tom Narayan told CNBC. "As a whole, there's some negativity on '27."Guidance cuts, increased costsAutomakers from the U.S.

to Europe to Asia have been facing a growing list of headwinds.For U.S.-based legacy automakers, Ford Motor said it expects next year's results to be in line with 2026, while General Motors grew more cautious about its ability to continue growing earnings as much as it had previously expected.

"We continue to believe that 2027 will be another strong year and better than 2026, assuming customer demand remains strong, and commodity, logistics and other recent cost pressures moderate," GM CEO Mary Barra told investors Oct.

20.GM CFO Paul Jacobson said that while it's too early to officially forecast, the company is facing additional inflationary costs that could lead to another $2 billion headwind in 2027, like it expects this year.

He specifically cited costs of commodity inflation, logistics and DRAM, or dynamic random-access memory chips as challenges.Those chips are critical components in modern vehicles and are used for everything from temporary data storage and real-time processing from infotainment systems to safety-critical systems.

GM and others have been able to offset outside pressures through cost cuts, operational efficiencies and resilient consumer demand for higher-margin vehicles.