Credit Calls

Research evidence excerpt

Credit Calls

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

21 July 2026

Tuesday, July 21, 2026

Feature Head of North America Credit

Research and Strategy

High Grade Automotive: 3Q26 Handbook (Evan Piascik) AC Tarek Hamid

There is a time for many words, and there is also a time for sleep. We remain

(1-212) 834-5468

cautious on the High Grade Automotive sector at current spread levels. The tarek.x.hamid@jpmorgan.com

macroeconomic landscape remains pressured, including elevated input costs, J.P. Morgan Securities LLC

supply chain headwinds, and weak consumer sentiment alongside persistent

affordability concerns. To this point, we estimate the total value of commodities in

a vehicle is up to ~$3.9k/vehicle, up from ~$3.5k/vehicle in our 2Q26 Handbook, Credit Calls is our daily compilation of

despite the value of aluminum in a vehicle falling to $643/vehicle compared to research reports from High Grade and

$739/vehicle at the time of our 2Q26 Handbook. DRAM supply constraints persist High Yield corporate credit analysts

as a longer-term concern for automotive production as memory manufacturers and strategists.

prioritize data center-related demand, but recent agreements from Ford and GM

with Micron represent an early step toward supply security. Tariff costs also remain High Grade Home Page

a persistent headwind for OEMs and weigh on margin profiles, and the ongoing

High Yield Home PageUSMCA negotiations are in-focus particularly for domestic OEMs/suppliers.

Please find our updated thoughts on APTV, BMW, BWA, CMI, DTRGR, F, GM, Daily Economic Briefing

HNDA, HOG, LEA, MGCN, MBGGR, STLA, TOYOTA, and VW within. Link to US Equity Research Top Stories

(updated 7:30am)

High Yield Aerospace/Defense, Industrials, and Services: 2Q26 Model Book Link to J.P. Morgan Markets page