High Grade Automotive Weekly Road Trip

Research evidence excerpt

High Grade Automotive Weekly Road Trip

J P M O R G A N North America Credit Research

26 June 2026

High Grade Automotive

Weekly Road Trip

Programming Note: The Weekly Road Trip will take a hiatus until after the U.S. North America Corporate Credit -

Independence Day holiday next week. We hope everyone has a happy and safe July Autos & Auto Parts and

4th! Manufacturing (IG)

Evan Piascik AC

Welcome to this week's edition of the Weekly Road Trip. The JULI Automotive index (1-212) 834-4432

tightened 6bp YTD to 96bp while JULI tightened 2bp YTD to 87bp. evan.piascik@jpmchase.com

Topical This Week: Max Berman

(1-212) 834-2380

• Moody’s revised its outlook on BMW to negative last Friday (A2 rating max.berman@jpmorgan.com

affirmed) following the company’s 2026 guidance cut driven by continued J.P. Morgan Securities LLC

headwinds in the Chinese automotive market, an extended impact of the

Middle East conflict beyond original assumptions, and elevated energy prices

(impacting its cost structure and consumer sentiment). Moody’s highlighted

uncertainty surrounding the scale and timing of BMW’s margin recovery,

while delays could result in further negative rating pressure.

• VW announced on Wednesday that it entered into an exclusive agreement with

Bain Capital to sell 51% of its shares in Everllence (diesel engine unit) while

remaining a 49% shareholder in the medium term. The transaction is expected

to close by YE26 and generate ~€7.4 billion of proceeds for VW, and VW

expects to make a decision on the use of proceeds later.

• JD Power released its 2026 U.S. Initial Quality Study (IQS) yesterday, and

Ford ranked the highest among “mass market brands” or third overall with a

PP100 (problems per 100 vehicles) score of 152, behind Porsche (138) and

Genesis (151).