Stellantis Just Lost $4.5B | Episode 1170

Stellantis reports a staggering loss of $4.5 billion in the third quarter, highlighting ongoing struggles within the automotive industry. While the company has managed to achieve profitability in North America, it faces significant challenges in Europe, where it is headquartered. The loss raises concerns about the competitive landscape, particularly as a recent survey indicates that over half of automotive executives believe Chinese manufacturers will dominate the market by 2035. Stellantis is attempting to address its issues by partnering with Chinese automakers to optimize its European operations.

In North America, the market is shifting towards a buyer's market, with increasing leverage for consumers in negotiations. Inventory data suggests that while Stellantis claims an 84-day supply of vehicles, many dealers are reporting much longer days on the lot, indicating an oversupply that could lead to increased incentives and rebates for buyers. The average monthly payment for new cars has risen to $787, and many consumers are financing vehicles for longer terms, exacerbating affordability issues.

As Ford prepares to release its earnings, analysts speculate on the company's need for stability rather than growth, particularly in light of ongoing warranty and recall challenges. The automotive sector is under pressure as consumers struggle with affordability, leading to a potential shift in market dynamics that could favor buyers in the coming months. The overall outlook for legacy automakers remains uncertain as they navigate these financial and market challenges.

Today on CarEdge Live, Ray and Zach discuss the latest data on Stellantis and Ford. Tune in to learn more! Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.